From our annual Tax Tips guide, here are the 3 tips and
suggestions related to Interest Deductibility and Tax-Free Savings
Accounts for the year 2017.
Interest Deductibility Tips:
1. Where possible, maximize interest deductions by structuring
or arranging your borrowings, first for business or investment
purposes, and then, for personal use.
2. 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.
Tax-Free Savings Account (TFSA) Tip:
3. Beginning in 2016, Canadian residents 18 years of age and
older can each contribute up to $5,500 annually, plus any unused
contribution room from previous years, to a tax-free savings
account. Going forward, the contribution limit will be indexed to
inflation and rounded to the nearest $500.
