Justin Time borrows $200,000 and invests the entire proceeds of the loan in public company shares on the TSX. After 3 months, the value of the securities has fallen to $100,000. At this point, Justin sells the securities and uses the proceeds to reduce the loan to $100,000. 

Now that he no longer owns the shares, can he still deduct the interest on the loan?

Answer rating: 100% (QA)

Justin Time can no longer deduct the interest on the loan ... View the full answer