Carrying charges and interest tax costs should be paid to claim tax deduction

Year End Tax Planning


Its a good time now to ensure that you have actually paid the following types of expenses before December 31, 2012 in order to claim a tax deduction on your return.


They include:

  • Fees paid to manage your investments.
  • Safety deposit box fees.
  • Interest on money borrowed for investment purposes to earn interest or dividends.
  • Legal fees paid relating to support payments you will receive including spousal and child support.



Some additional points to note:

  • Fees paid to manage RRSP’s are not deductible nor can a payer claim legal fees paid to establish, negotiate or contest the amount of support payments.
  • Spousal Support under court orders or written agreements are deductible only if they were paid.  You cannot claim legal fees you paid to get a separation or divorce or to establish custody of or visitation arrangements for a child.


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Sam Seidman, CPA, CA, LPA
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Toronto, Ontario
M3H 2S3

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Fax: (416) 398-6226

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The information provided here and throughout the site of TorontoAccountant.CA is intended for general tax information only, and should not be misconstrued as a legal source of information regarding your tax situation, or be used for any other purposes other than for general information.
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