Discussion Starter · #1 ·
Question for anyone with taxation knowledge – what is the tax treatment on the interest paid from Canadian convertible debentures, i.e. money paid from the debt instrument, prior to any potential conversion to common shares? I’ve always assumed the interest is taxed similar to a conventional corporate bond and therefore convertible debentures should be held in an RRSP. I read somewhere there is preferential tax treatment for convertibles, but I could not recall the source. Thanks in advance.