Lines 13 to 17 - Carrying charges and interest expenses
Lines 13 to 17 - Carrying charges and interest expenses
Carrying charges and interest expenses include:
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interest on money borrowed to earn investment income
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fees for the management or safe custody of investments
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accounting fees for recording investment income
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investment counsel fees
Note
A deduction of an amount paid or payable in respect of the use of a safety deposit box of a financial institution is not allowed.
Do not include trustee fees paid by the trust or brokerage fees or commissions paid by the trust to buy or sell securities. If the trust paid these expenses to purchase a security, they are part of its cost. If the trust paid them to sell a security, claim them as "Outlays and expenses (from dispositions)"in column 4, Part 1 and Part 2 as applicable, of section 1 of Schedule 1.
You can deduct interest expenses on a life insurance policy loan if the trust used the proceeds of the loan to earn income. If the trust elects to add the interest expense to the adjusted cost base of the policy, you cannot deduct it on line 14 of the return. If the trust is claiming interest paid on a policy loan during the year, the insurer has to complete Form T2210, Verification of Policy Loan Interest by the Insurer, no later than 90 days after the trust's tax year-end.
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