Précis: In 2007 Mr. Van Steenis borrowed $300,000 to purchase units of a mutual fund. Between 2007 and 2015 he received a return of capital from the fund of $196,850. He used some of that return to repay a portion of the loan but used the majority for personal purposes. Nevertheless he continued to deduct the full amount of interest on the loan. CRA reassessed denying an interest deduction for the returns of capital that had been used for personal purposes. The Tax Court dismissed the appeal. There was no order as to costs since this was an informal procedure appeal.
Van Steenis v. R. – TCC: Interest on funds used for personal purposes not deductibleREAD MORE »