Post by
tamaracktop on Sep 26, 2022 7:55am
Here's some good free advice
If you have a mortgage and you have a stock portfolio you're doing things bass-ackwards.
Sell your portfolio, pay off (or down) your mortgage, and then borrow against your house to buy your
portfolio back and your mortgage interest suddenly becomes tax deductible.
Mortgage interest isn't tax-deductible.
Interest on monies borrowed to buy stock is a tax-deductible carrying charge.
As always, consult with your advisor(s) first.
Comment by
Takis on Sep 26, 2022 10:33am
I looked into this and thought interest was tax deductible only when using a HELOC to buy dividend paying securities. Have I been misinformed?
Comment by
tamaracktop on Sep 26, 2022 10:58am
Absolutely you were. The law is intentionally vague enough to include virtually all Canadian companies. You can deduct interest for any company so long as there is a "reasonable possibility that the company may pay dividends at some point in the future". The courts have established precedents that have established that this caveat applies to every Canadian company. Believe it or not!