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New Member
posted Oct 29, 2019 11:29:17 PM

I have a question regarding "intrest expenses" and "Paid to aquire partnership" sections on the form

I have a loan which i used to purchase partnership shares in the company. In 2015 I payed $18,750,00 for interest on my loan for $625,000.00. I payed a principle amount of $125,000.00 with the total combined payout of $143,750.00

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1 Best answer
New Member
Oct 29, 2019 11:29:18 PM

If the purpose of the loan is to earn income, the interest is deductible.  If buying into the partnership provides financial opportunity such as a partnership agreement that provides for the division of profits, then the CRA purpose test would be met.

1 Replies
New Member
Oct 29, 2019 11:29:18 PM

If the purpose of the loan is to earn income, the interest is deductible.  If buying into the partnership provides financial opportunity such as a partnership agreement that provides for the division of profits, then the CRA purpose test would be met.