MR Lodge has some questions about passive income (CANADIAN TAX) His finances are tight, but he wants to make some more investments. He's heard he can take out a loan to invest in and then expense the interest for this loan on his tax return. Does that sound right? He is currently in just his second year of ownership of a rental property. This year, he had a net profit from the rental; last year, he had a loss. He has made all the renovations and now has nice, long-term renters living there, so he expects the $3000 profit he made this year to increase in the future year. The apartment originally cost500,000. He has heard that by deducting some amount from his property's taxes, he can eliminate his income completely. Is that accurate, and how does it operate? What are the tax ramifications for him in the future if he chooses to exploit this? Furthermore, he has received two dividends from new investments this year, which are as follows: - A 5% shareholding in his friend's private company. He received a dividend of $1,000 from the company in the year. - Furthermore, he has benefited from a dividend from his public company shares investment in Microsoft. Although this was paid for in US dollars, his investment statement showed that the account really received $800 in Canadian dollars. How would his calculation be affected by the 10% that was reportedly withheld from him prior to his payout? What treatment would each receive on his tax return