📊 Line 22100 – Carrying Charges, Interest Expenses and Other Expenses
Line 22100 on your T1 tax return is where you report certain carrying charges and interest expenses you paid to earn income from investments or property. These deductions can reduce your net income and ultimately the tax you owe.
📌 What You Can Claim
You can claim eligible expenses you paid in the year to earn income such as interest, management fees and other related costs:
- 📈 Interest on money you borrowed and used to earn investment income (e.g., interest, dividends) — as long as the purpose was income‑producing.
- 📊 Fees to manage or take care of investments (excluding fees for registered plans like RRSP, TFSA, FHSA, PRPP, etc.).
- 💼 Fees for certain investment advice or for recording investment income.
- 🧾 Reasonable professional fees to prepare or assist with your return if you have income from business or property.
- ⚖️ Legal fees relating to support payments received from a spouse or partner.
❗ What You *Cannot* Deduct
The following amounts are explicitly not deductible on Line 22100:
- ❌ Interest on money borrowed to contribute to registered plans (e.g., RRSP, DPSP, PRPP, RPP, RESP, RDSP, TFSA, FHSA).
- ❌ Safety deposit box charges.
- ❌ Interest on student loans (claimable as a credit on Line 31900 instead).
- ❌ Subscription fees for financial newspapers, magazines, newsletters.
- ❌ Brokerage fees or commissions from buying or selling securities — these are used in capital gain/loss calculations instead.
- ❌ Legal fees for separation/divorce or child custody/visitation arrangements.
📌 Special Notes
- If the CRA paid you interest on a tax refund and you reported it as income in a prior year, and later repaid some of that interest after reassessment, you may claim that repayment as a deduction on Line 22100 (up to the amount reported).
- Keep all receipts and records for the expenses you claim — the CRA may ask to see them.
- If you have both Canadian and foreign investment expenses, use your tax worksheet to allocate amounts correctly.
🧠 Practical Tips
- 💡 Only claim interest and fees that directly relate to earning taxable investment income.
- 📁 Professional fees that helped prepare your return can be claimed if related to business or property income — but ensure they weren’t deducted elsewhere.
- 📊 Interest paid on funds used to produce only capital gains generally isn’t deductible.
