Question
Justin Time borrows $200,000 and invests the entire proceeds of the loan in public company shares on the TSX. After 3 months, the value of
Justin Time borrows $200,000 and invests the entire proceeds of the loan in public company shares on the TSX. After 3 months, the value of the securities has fallen to $100,000. At this point, Justin sells the securities and uses the proceeds to reduce the loan to $100,000.
Now that he no longer owns the shares, can he still deduct the interest on the loan?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Justin Time can no longer deduct the interest on the loan ...
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
