The last word on Deducting Interest in Canada Bulletin IT-533 - Income tax planning expert advice direct from the CCRA with clea

Subject: Have you seen Tax bulletin IT 533?? What a joke!!!

Another blow for all Canadian Investors.What A joke

I might as well sell everything now, pack up and move to Mexico.





From: XXXX
Sent: Saturday, January 24, 2004 3:17 PM
To: [email protected]
Subject: Have you seen Tax bulletin IT 533 What a joke

Another blow for all Canadian Investors.What A joke

I might as well sell everything now pack up and move to Mexico.


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david ingram replies:


I disagree. for the first time, the CCRA is clearly spelling out the rules for making mortgage interest and other interest deductible.

It is easier to deal with now.

ingram

Read the Government Bulletin at:
http://www.ccra-adrc.gc.ca/E/pub/tp/it533/it533-e.html#P138_15186

Print it out and then read my November 2001 Newsletter on the same subject at:

http://www.centa.com/CEN-TAPEDE/November_2001.htm

david ingram

The example I like best is the most abused.

Someone will borrow $1,000 to buy an investment and the interest is clearly deductible. However, if they sell the investment for less money as David Emerson did, in the past, they would try and disallow the interest on the remaining loan because there was no longer any expectation of profit. This bulletin clearly states that if you sell it for $600 and pay off $600 of the loan, the interst on the $400 remaining is still deductible even though there is no ;pmger any possibility of profit.

However, if you take the $600 and buy something personal, none of the interest would be deductible in the future.

Pay atention and print it all out.