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I loaned money from my tfsa in 2012. It was supposed to be for 6 months but the loan was not repaid until 2017. There is interest income to report. Can I deduct the income tax on this interest income as a carrying charge? If the money was not loaned it would have grown tax free within the tfsa. Thank you.
 

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If I understand you, you withdrew money from your TFSA and loaned the cash to someone and charged that person interest.
That person has now repaid your loan and interest.

The source of your money ie TFSA, has no bearing on this transaction.
You lent someone money, they paid you interest.
You declare the interest as income and pay appropriate tax on it.
End of story.
You cannot expense income tax as an expense on your income tax.

Yes the money may have grown tax free in the TFSA but you chose to remove it from its tax free vehicle. You should have accounted for this when you determined what interedt rate to charge. Surely you asked for more than you would have received in the TFSA.
 
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