Justin Time borrows $200,000 and invests the entire proceeds of the loan in public company shares on
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Question:
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?
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
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