Question
Which of the following statements related to interest deductibility is correct? A. If a business borrows to pay interest free loans to its employees, the
Which of the following statements related to interest deductibility is correct?
A. If a business borrows to pay interest free loans to its employees, the interest on the borrowing will not be deductible.
B. If an individual borrows $100,000 to invest in securities and the securities are later sold for $60,000, interest on the $100,000 will continue to be fully deductible provided the $60,000 is immediately invested in other securities.
C. Interest paid on a mortgage secured by a principal residence is never deductible in Canada.
D. If an individual borrows in order to buy common stocks, the interest on the borrowing will only be deductible if the stocks have a long-term history of paying dividends.
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