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Can You Deduct Carrying Charges?

If your financial institution sent you an investment statement or an annual report (neither of which constitutes an official tax slip), it probably shows the carrying charges you paid on your investments. However, you may not be able to deduct those charges on line 231 of your income tax return. 

Since July 2016, financial institutions have been required to be more transparent about investment fees and returns. As a result, management fees and other amounts paid to your representative are no longer shown as a percentage but rather as a specific dollar amount. These fees are usually included in the net return on your investments and are shown for information purposes only. For this reason, they generally cannot be deducted on line 231 of your return.

Likewise, trailing commissions and the management expense ratio (MER) for mutual funds cannot be deducted on line 231.

If you have filed your return and want to amend it, complete form TP-1.R-V, Request for an Adjustment to an Income Tax Return.

If you did not report securities transactions in the past, see our voluntary disclosure policy for information on how to correct your tax situation.

For more information on carrying charges, see the guide to the income tax return (TP-1.G-V) or Line 231 – Carrying Charges and Interest.

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