Can I claim interest costs of a Canadian personal loan I took out to repay a portion of my UK mortgage in order to be able to refinance my UK mortgage? (LTV was too high)

[lourussell198]

I am deducting the UK mortgage interest cost, but can I also deduct the interest cost of my Canadian personal loan, given the funds were used to repay a portion of my UK mortgage on a UK property?

[TurboTaxVeronique]

As per CRA, you can deduct certain fees you incur when you get a loan to buy or improve your business property. You deduct these fees over a period of five years, regardless of the term of your loan. Deduct 20% (100% divided by five years equals 20%) in the current tax year and 20% in each of the next four years. The 20% limit is reduced proportionally for fiscal periods of less than 12 months.

For your specific question, we suggest you to contact CRA. Here is the link to contact them:

Contact the Canada Revenue Agency (CRA)
 

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