Funds are borrowed by an individual from a financial institution at an 11% per annum interest rate to purchase the following unrelated investments:
(a) Gold coins on which gains or losses will be treated as capital gains or losses;
(b) An RRSP portfolio of investments yielding 12.5% in interest;
(c) A five-year GIC paying interest at 8% per annum;
(d) Common shares of a Canadian-resident public corporation paying no dividends;
(e) Preferred shares of a Canadian-resident public corporation paying 7% dividends;
(f) Preferred shares of a U.S. corporation paying 9% dividends;
(g) $100,000 of assets used in an unincorporated business which generated net income of $9,750 before drawings of $18,000 for the year;
(h) Lottery tickets which yielded $75,000 in winnings which were reinvested in short-term securities yielding 13%; and
(i) Common shares of a Canadian-resident public corporation paying dividends of 6%; later in the year the shares were sold at a small gain to repay a 14% second mortgage on a principal residence.
REQUIRED
Determine the deductibility of the interest expense in each of the unrelated cases.