# Tax deductions for investment purposes



## Zack (Dec 2, 2011)

Hi all,

I'm new to the forum, and I've been researching what types of borrowing to use in investments, and if the loan interests can be tax deductible?

Here's one example, I have a Home Credit Line of about $200K, with $150K of mortgage and about $50K of available credit.

I want to take out about $15K of that and invest into a TFSA, and buy either high yield dividend stock or stocks available on the Nasdaq.

Is the interest from the loan tax deductible? Are any forms of loan for any types of investments tax deductible (canadian and quebec markets)?

Any insight is much appreciated, thanks!

-Zack


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## stardancer (Apr 26, 2009)

Right off the top, any interest on a loan taken to invest in a TFSA, RRSP, RESP or an RDSP is NOT tax deductible. See

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns206-236/221/menu-eng.html

If you are using the same line of credit on which you have other expenses (mortgage or personal), then keep extremely good records, as only the interest on the actual investment loan would be deductible.


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