Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
EnglishEN

Pick a language

Français English
Announcements
If you're using the CD/download version of TurboTax and getting a TT805 error, please read

this message

cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

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

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)?

1 Best answer

Accepted Solutions
New Member

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

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.

View solution in original post

2 Replies
New Member

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

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.

View solution in original post

New Member

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

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