Weekly Tax Tips
Continue to deduct interest on your investment loan
Date: 6 May 2011
Where you have borrowed to purchase investments, remember that you can continue to deduct interest on the loan even if that investment is sold for a loss. To maintain full interest deductibility, you must reinvest the proceeds you receive for the loss investment in a new investment if the proceeds are not used to repay your investment loan. Note that different rules apply for real estate and depreciable property.
This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 6 May 2011.
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