Thousands of Canadians pay more income tax than they should. By
not taking full advantage of deductions, you may be one of those
generous Canadians without even knowing it. Are you aware of all of
the deductions that are available to you? Do you file your return
on time? Do you pay tax instalments quarterly to avoid interest
charges? Here is a look at some of the commonly missed
opportunities that could be contributing to your larger than
necessary tax bill.
Carrying charges and deductible interest
Borrowed funds must generally be used for the purpose of earning
income (e.g. investing) in order for the related interest to be
deductible. Maintaining proper documentation of loans and interest
payments will help support claims for interest deductions.
Deductible carrying charges may include investment counsel fees,
bank fees or similar charges.
