Newsgroups: can.general
Path: utzoo!lsuc!dave
From: dave@lsuc.uucp (David Sherman)
Subject: Re: Bank obnoxiousness, tax woes
Date: Thu, 30-Mar-89 23:11:58 EST
Summary: expenses laid out to earn interest income are deductible
Message-ID: <1989Mar30.231203.4396@lsuc.uucp>
References: <2.UUL1.3#5109@pantor.UUCP>
Organization: Law Society of Upper Canada, Toronto

In article <2.UUL1.3#5109@pantor.UUCP> richard@pantor.UUCP (Richard Sargent) writes:
>Just as an aside, it seems to me that the tax laws allow deductions of expenses
>which were used to earn revenue. This implies that if I declare interest earned,
>I can deduct the damned service charges on my income tax!!!

Certainly, provided you meet the test you yourself have described.
If the service charges are required to earn the interest, you can
claim them as carrying charges.  But if they are charges for cheques
or withdrawals on the account, I don't see how they can be considered
amounts paid for the purpose of earning the interest income.

David Sherman
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