Margin account interest

[Mlamb]

I have a Margin account where I paid a substantial interest this year to buy and trade stocks. Where should I enter these inerest charges...... in T5008 under expenses or under carrying charges?

[Geo123]

Hello Mlamb,

To report the carrying charges and interest you paid to earn investment income, please follow these steps:
1. On the "Left side menu on the Interview tab", select "Interview setup".
2. On the right-hand side page, go to the "Investment income and expenses" group, check the box "Interest, investment income and carrying charges/interest expenses/CNIL (T3, T5, T4PS, T5008, RC359)" and click "Next" at the bottom of the page.
3. Return to the "Left side menu on the Interview tab" and select "Interest, investment income and carrying charges".
4. On the right-hand page, choose the "Income" group you have earned and enter the income you have earned, and on which you paid interest or financial expenses.
5. Then, in the "Expenses" group, click on the "plus" sign icon to the right of the line "Carrying charges or interest expenses (line22100)". Complete this page according to your situation.
The program will carry over this amount on line 22100 of your federal return
-----FYI-----
Claim the following carrying charges and interest you paid to earn income from investments:
   - fees to manage or take care of your investments (other than any fees you paid for services in connection with your pooled registered pension plan, registered retirement income fund, registered retirement savings plan, specified pension plan, and your tax-free savings account)
    -fees for certain investment advice (see Interpretation Bulletin IT-238, Fees Paid to Investment Counsel) or for recording investment income
-most interest you paid on money you borrowed for investment purposes, but generally only if you use it to try to earn investment income, such as interest and dividends
 

 

[Mlamb]

Thanks, Geo123.

I was getting confused by the statement" earn investment income, such as interest and dividends" 

Mine is a capital gain and not interest or dividend. Should I enter the interest under carrying charges as you suggested for the capital gains also?

[Curmudgeon]

Yes, do the same for capital gains.

[Mlamb]

Thanks a lot