- Joined
- Sep 25, 2007
- Messages
- 201
Hi all,
An article from today`s issue of the Globe and Mail (Globe Investor). Excerpt:
The view of CRA and the courts is that any repayment of the principal owing under a line of credit or other debt reduces the portions used for both eligible and ineligible purposes, in proportion.
The best approach is to separate your eligible and ineligible borrowings – perhaps using separate lines of credit. This way, you can choose to pay down that ineligible debt first, leaving your eligible debt outstanding, and maximizing your interest deductibility.
http://www.theglobeandmail.com/servlet/sto...SpecialEvents2/
Keith
An article from today`s issue of the Globe and Mail (Globe Investor). Excerpt:
The view of CRA and the courts is that any repayment of the principal owing under a line of credit or other debt reduces the portions used for both eligible and ineligible purposes, in proportion.
The best approach is to separate your eligible and ineligible borrowings – perhaps using separate lines of credit. This way, you can choose to pay down that ineligible debt first, leaving your eligible debt outstanding, and maximizing your interest deductibility.
http://www.theglobeandmail.com/servlet/sto...SpecialEvents2/
Keith