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)?

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1 Best answer

Level 6

Oct 29, 2019 7:55:16 PM

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.

Level 6

Oct 29, 2019 7:55:16 PM

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.

New Member

Oct 29, 2019 7:55:17 PM

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

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