Can you deduct interest vis investment income in Canada?

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Badger
Posts: 16
Joined: Sun Mar 19, 2006 11:36 am

Can you deduct interest vis investment income in Canada?

Post by Badger »

Someone has suggested that if you own real property in Canada you can deduct your interest costs as against your investment income. Is this true and if so where do I find more information?

Also are you restricted to Canadian investments for this or could you have a US brokerage account and do this?
nelsona
Posts: 18675
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

if you own rental property, you can and should be deducting any rental expenses againat that income on a 216 return.

As to other investment expenses against non-rental investment real estate.. maybe. But remember, this does not include any cap losses incurred on US investments, as these cannot be claimed in Canada, since you live in US.

Other than capo gains, any income that your non-renatl property generates is subject to FLAT Cdn NR tax at 10 to 15% depending on type. There is no way to reduce this.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
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