Tax Deductions for Investors

Some deductions that may be available to investors include:

• Interest on money borrowed to fund investments that are primarily intended to produce income, as well as prepaid interest up to 12 months;

• Loan costs apportioned over 5 years if over $100;

• Mortgage discharge fees;

• Depreciation of plant, equipment and building for real estate investors;

• Rental protection insurance for real estate investors.

Investors may also be entitled to general tax deductions that are not work specific, such as investment deductions or car expenses deductions.

Investors, due to the nature and complexity of their situation, are strongly advised to seek professional advice which is specific to their situation. Many investors can end up paying more tax than they need to if they do not arrange their affairs in the most tax effective way.