Interest Expense deductible for Immigrant Investor Program?

Indi500 · Post by **Indi500** » Mon Jan 24, 2011 3:30 pm

Not sure if anyone knows how this works. Basically, you give the bank $120k and then they take that as a fee\interest for putting up the money for 5 years for the IIP. Can this interest cost be deducted as an investment expense?

JGCA · Post by **JGCA** » Sun Jan 30, 2011 3:29 pm

Normally in order to claim investment expenses against income the interest paid should have been for an outlay that produces investment income. In your case you have given them a deposit and they will take that as a fee for their security over a period of time. The way it is structured it will not be an interest cost but rather a fee. You may be able to claim this fee as a business expense straight line over 5 years against any business related income but if it is merely for your personal residency then it is not a business related expense and surely can not be claimed as interest.