When I deduct the interest paid on money borrowed to purchase an investment, what does that do to the ACB?

aitken11 · ‎October 29, 2019

For example, in 2014, I borrowed $100 to purchase one share of XYZ company. The interest on the loan, which I deducted from income, was $10. I sold my share in 2015 and received $115 in proceeds of disposition. Taking into account the deduction, does that make my ACB $90 ($100 - $10)?

TonyC11 · ‎October 29, 2019

This has no effect on the ACB of your shares. It doesn't matter how you financed the purchase,
only that you paid a certain price.

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aitken11 · ‎October 29, 2019

Thank you. I thought that I had to lower the ACB according to the amount of interest deducted. I appreciate the clarification.

When I deduct the interest paid on money borrowed to purchase an investment, what does that do to the ACB?

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