Investing

Categories of income and interest expense deductibility

  • Last Updated:
  • Aug 9th, 2018 2:33 pm
[OP]
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Jun 11, 2007
5 posts

Categories of income and interest expense deductibility

Hello,

I have a specific question regarding interest expense deductibility. Would appreciate if someone could elaborate.

The income reported in T5 could fall into various categories, such as "dividends from Canadian sources", "interest from Canadian sources", "other income from Canadian sources", and "foreign income". Assume I used borrowed money (e.g. from LOC) to make the investment and earned the income reported in T5. I know the interest expenses on LOC can be deducted against my regular income if "dividends from Canadian sources" or "interest from Canadian sources" are reported in T5. However, can interest expenses still be deducted if I only earned "other income from Canadian source"? And what if "foreign income" is the only income ?

Thanks!
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