On T5 Summary Sheets there is a column indicating "Interest Paid By You". In the past I have entered this into Profile on Schedule 4 as Management or Safe Custody fees, but I'm not sure this is correct. Any thoughts?

Answer

1 person found this helpful

Bob,

Here is additional info from the General Income Tax and Benefit Guide:

You can claim the following carrying charges and interest you paid to earn income from investments:

fees to manage or take care of your investments (other than administration fees you paid for your registered retirement savings plan or registered retirement income fund), including safety deposit box charges;

fees for certain investment advice (see Interpretation Bulletin IT-238, Fees Paid to Investment Counsel) or for recording investment income;

fees to have someone complete your return, but only if you have income from a business or property, accounting is a usual part of the operations of your business or property, and you did not use the amounts claimed to reduce the business or property income you reported (see Interpretation Bulletin IT-99, Legal and Accounting Fees);
 
most interest you pay on money you borrow for investment purposes, but generally only as long as you use it to try to earn investment income, including interest and dividends. However, if the only earnings your investment can produce are capital gains, you cannot claim the interest you paid. For more information, contact us; and
 
legal fees you paid relating to support payments that your current or former spouse or common-law partner, or the natural parent of your child, will have to pay to you. Legal fees you paid to try to make child support payments non-taxable must be deducted on line 232. For more information, see Guide P102, Support Payments.

You cannot deduct on line 221 any of the following amounts:

the interest you paid on money you borrowed to contribute to a registered retirement savings plan, a registered education savings plan, or a registered disability savings plan, or a Tax-Free Savings Account (TFSA);

the interest part of your student loan repayments (although you may be able to claim a credit on line 319 on Schedule 1 for this amount);

subscription fees paid for financial newspapers, magazines, or newsletters;

brokerage fees or commissions you paid when you bought or sold securities. Instead, you use these costs when you calculate your capital gain or capital loss. For more information, see Guide T4037, Capital Gains, and Interpretation Bulletin IT-238, Fees Paid to Investment Counsel; and

legal fees you paid to get a separation or divorce or to establish custody of or visitation arrangements for a child.

By the way  the answer you shared is correct.

Thank you.
Hardev
Was this answer helpful? Yes No
Original
Moderator

No answers have been posted

More Actions

People come to ProFile for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach: