Deduction of Interest Expense

Interest on borrowed money can be deductible, but in order to claim the interest it has be utilized in a purpose that produces income.  Rather than being used for personal investments or other purposes. In order to satisfy the legal requirements the following conditions have to be met: That there is a legal requirement to actually pay the interest off. The monies borrowed are actually used for investment purposes and not as mentioned prior, and lastly the amount if interest charged is seen as reasonable.

So if you are borrowing money you cannot be charged an unreasonable amount of money and work to write it off as that would not work. In today world one would expect that to be approximately 5 maybe 10% maximum, and not higher than that depending on circumstances of course.  The only way to totally clarity this as well is to check with your accountant and ensure that you meet all requirements before proceeding to do so as otherwise you may get into trouble with Revenue Canada and who wants that. So yes double check and see if its legal and then if it is adjust your taxes accordingly and deduct your interest.