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Path: utzoo!dciem!nrcaero!pesnta!lsuc!dave
From: dave@lsuc.UUCP (David Sherman)
Newsgroups: net.legal,net.taxes
Subject: Re: Abuse of social contracts. (tax system)
Message-ID: <445@lsuc.UUCP>
Date: Mon, 25-Feb-85 16:21:16 EST
Article-I.D.: lsuc.445
Posted: Mon Feb 25 16:21:16 1985
Date-Received: Tue, 26-Feb-85 00:21:44 EST
References: <2748@dartvax.UUCP> <445@ahuta.UUCP> <399@lsuc.UUCP> <110@styx.UUCP> <687@amdcad.UUCP> <1998@sun.uucp> <701@amdcad.UUCP> <439@lsMon, 25-Feb-85 16:21:16 EST
Reply-To: dave@lsuc.UUCP (David Sherman)
Organization: Law Society of Upper Canada, Toronto
Lines: 17
Summary: basis for interest not being deductible in Canada

The basis for mortgage interest not being deductible in Canada
has nothing directly to do with houses. Interest in general
is not deductible unless it's interest on money borrowed for
the purpose of producing income which is subject to tax.
So interest on personal loans, charge cards and personal house
mortgages is all ineligible for deduction. (There is no tax on
the gain resulting from the sale of a house which is your principal
residence.) On the other hand, interest paid on a loan which you used
to buy shares or a rental property is deductible. This principle
is called "matching", and doesn't apply in the U.S. as far as
interest is concerned.

Dave Sherman (yes I am a tax lawyer)
Toronto
-- 
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