ARTICLE · 08 DECEMBER 2016

Tax Tips 2016: Interest Deductibility And TFSAs

Crowe Soberman LLP

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From our annual Tax Tips guide, here are the tips and suggestions related to Interest Deductibility and Tax-Free Savings Accounts for the year 2016.

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Crowe Soberman'S Tax Group

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From our annual Tax Tips guide, here are the tips and suggestions related to Interest Deductibility and Tax-Free Savings Accounts for the year 2016.

Interest Deductibility Tips:

Where possible, maximize interest deductions by structuring or arranging your borrowings first for business or investment purposes, and then for personal use.
- Note that the federal government has abandoned the proposed restrictions on the deduction for interest on funds borrowed to make investments in foreign affiliates.
Where certain business or capital property (e.g., shares, but not real estate or depreciable property) is lost or ceases to earn income, the interest incurred on the related borrowed money may in some cases continue to be deductible.

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