[Fisherman30]

Hi Everyone,

I recently started doing the Smith manouevre, which involved turning my mortgage into a readvancebale HELOC/mortgage. Part of that process involved a $300 appraisal fee, which the bank slapped on to my HELOC. All of the money from the HELOC is being used to invest. Would this $300 appraisal fee be tax deductible? Thanks!

 

[Spudd]

I would say that should fall under carrying costs.

See this bulletin:

ARCHIVED - Legal and Accounting Fees - Canada.ca

This bulletin contains a general discussion of the treatment for tax purposes of legal and accounting fees.

www.canada.ca

 

[depassp]

I am running the Smith Manoevre and have claimed opening/appraisal fees on line 22100. I have not been audited/bothered about it by the CRA.

If you go to the source:

Line 22100 – Carrying charges, interest expenses and other expenses - Canada.ca

Claim certain carrying charges and interest paid to earn income from investments. Note: Line 22100 was line 221 before tax year 2019.

www.canada.ca

Claim the following carrying charges and interest that you paid to earn income from investments:

• fees to manage or take care of your investments

Appraisal fee was necessary to open the HELOC which is being used to take care of your investments.