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My answer is yes because the loan is being used to invest into a company, but I am not 100% sure. This is for Canadas

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My answer is yes because the loan is being used to invest into a company, but I am not 100% sure. This is for Canadas tax code

Joel takes out a loan from his local bank at a rate of 5%. He invests that loan in preferred shares of ABC Co, that bear interest at 6%. Is the interest on Joel's loan from the bank deductible in computing his income? No Yes

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