Entrepreneurship & Small Business

Question about Tax Deductions on Smith Maneuver

  • Last Updated:
  • Apr 20th, 2021 10:45 pm
[OP]
Newbie
Dec 24, 2020
3 posts

Question about Tax Deductions on Smith Maneuver

I am thinking of doing the smith maneuver, which let's me borrow money and invest into eligible dividends stocks. I can write off the interest I paid for the loan. Can I write the interest off against my normal income bracket or will it have to be against the dividends tax bracket?

Just trying to figure out if I can choose where my tax deductions go or if its fixed.

Thanks!
1 reply
Newbie
Mar 10, 2021
26 posts
24 upvotes
Interest expense deductions are declared on Line 22100 - Carrying charges and interest expenses. It'll be taken off after total income had been calculated (i.e after all sources of income have been added)

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