What counts as a carrying charge
The CRA’s list for line 22100 includes fees to manage or take care of your investments, certain investment advice fees, fees for recording investment income, and most interest on money you borrowed and used to try to earn investment income. Reasonable fees for preparing your return can qualify when you have business or property income.
Investment management fees do not qualify when they relate to an RRSP, RRIF, TFSA, FHSA or similar registered plan, because income in those plans is not taxed the usual way. This page covers personal investment costs. Business interest and rental costs follow different lines and are covered elsewhere.
What you cannot deduct
The CRA specifically excludes interest on money borrowed to contribute to an RRSP, TFSA, FHSA, RESP, RDSP and several other plans, safety deposit box charges, student loan interest (which has its own credit), subscriptions to financial publications, and legal fees for separation or divorce.
Brokerage fees and commissions on buying or selling securities are not carrying charges either. They are added to your cost or taken off your proceeds when you calculate a capital gain or loss, so they show up through your adjusted cost base.
An illustrative example
Suppose you borrow $20,000 to buy dividend-paying shares in a non-registered account and pay $1,000 of interest in the year. Because the shares can produce dividends, the interest is generally deductible. You also pay $300 in account management fees, which generally qualify too. Your deduction is $1,300. These figures are illustrative.
If the only thing an investment can earn is a capital gain, the CRA says you cannot claim the interest. Check what the investment can actually pay before relying on the deduction.
Records and what to discuss with your accountant
Keep lender statements showing interest, fee invoices, and a note of what each loan was used for. If you changed how you used borrowed money during the year, the answer to what was deductible can change.
Speak with your accountant before borrowing to invest, when you hold both Canadian and foreign investment income, or when carrying charges are large. Some people also meet the alternative minimum tax because most carrying charges on certain investments count when it is tested.
Sources & editorial notes
Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- Line 22100 – Carrying charges, interest expenses, and other expensesCanada Revenue Agency
- Line 41700 – Minimum taxCanada Revenue Agency
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.