5 – TAX RETURNS FOR INVESTORS: Deducting interest expenses and management fees

🏦 Introduction to Preparing Tax Returns for Taxpayers with Investments
🎯 General Rule for the Deductibility of Investment Expenses (Canada)
💼 Deductibility of Management & Advisory Fees as Carrying Charges (Canada)
🧾 Clearing Up Confusion: Management Fees on Mutual Funds in Canada
💸 Deducting Interest Paid on Investment Loans (Canada)
📌 Don’t Miss These Carrying Charges on Client Files — T-Slip Reporting (Canada)
🧾 Are Tax Preparation Fees Deductible as a Carrying Charge? (Canada)

🏦 Introduction to Preparing Tax Returns for Taxpayers with Investments

Investors face unique tax-reporting challenges — and as a tax preparer, you must know how to report investment income correctly and maximize legitimate deductions 💡. This section will give you a solid foundation to confidently handle investment-related tax returns in Canada.

📄 Common Investment Tax Slips & What They Mean

As a tax preparer, you’ll frequently see the following T-slips on investment returns:

Slip	Purpose	What It Reports
T5	Investment Income Statement	Interest, dividends, foreign income
T3	Trust Income Statement	Mutual fund distributions, capital gains from funds
T5008	Securities Transactions	Sale of securities — reports proceeds only, not cost
T5013	Partnership Income	Income/loss from limited partnerships

✅ Pro Tip: T5008 slips often lack Adjusted Cost Base (ACB) — you must confirm it with the client or investment statements.

📈 Capital Gains & Losses Overview

When an investor sells stocks, bonds, ETFs, or mutual funds, they may have:

Capital gain (profit)
Capital loss (loss)

Only 50% of the capital gain is taxable.
Capital losses can offset ONLY capital gains — not other income.

🔁 Loss Carry Rules

Action	Rule
Carry back losses	Up to 3 previous years
Carry forward losses	Indefinitely

💡 Tip: Always check if carrying back a loss actually results in a refund. If the taxpayer paid little/no tax in prior years, carrying forward may be better.

🧮 Adjusted Cost Base (ACB) — Where Things Get Tricky

When selling securities, CRA expects:

Capital Gain/Loss = Proceeds − ACB − Selling Costs

Often, ACB isn’t on slips — so you must:

✅ Request transaction history or brokerage statements
✅ Confirm if reinvested distributions were added to ACB
⚠️ Avoid guessing — CRA may ask to verify ACB

📌 Mutual funds & ETFs often reinvest dividends — increasing the ACB even if no cash received.

💸 Deductible vs. NON-Deductible Investment Expenses

✅ Deductible Carrying Charges

Deductible	Examples
✔ Interest on money borrowed to invest	Margin loan, investment loan
✔ Investment management fees	Paid to advisors (not on RRSP/TFSA)
✔ Accounting fees for investment income tax prep
✔ Safe deposit box fees (for pre-2014 years only)	Historic returns only

❌ Expenses NOT Deductible

Not Allowed	Examples
❌ RRSP/TFSA admin fees	Registered accounts are tax-sheltered
❌ Trading commissions on buy/sell	Already included in ACB & proceeds
❌ Financial planning fees	Unless specifically for investing
❌ Personal bank fees	Not investment-related

🚨 CRA audits carrying charges frequently — ensure charges are legitimate and documented.

🧾 Working with Client-Provided Documents

You may receive:

Formal T-slips
Brokerage summaries
Financial advisor reports
Client spreadsheets (beware errors!)

📎 Always cross-verify against CRA Auto-fill My Return data, but don’t rely solely on it.
Auto-fill often misses ACB information and adjustments.

🧠 Key Best Practices for Investment Returns

✔ Track ACB accurately — especially for long-term investors
✔ Request missing cost information from clients early
✔ Review foreign income — ensure foreign tax credits are applied
✔ Understand capital loss carrybacks & forward strategy
✔ Watch for superficial loss rules (future advanced topic)

🟩 ✅ Quick Summary Cheat Sheet

Topic	Key Point
Investment slips	T3, T5, T5008, T5013
Most difficult area	Calculating ACB accurately
Deductible items	Interest & investment management fees
CRA focus area	Carrying charges & ACB evidence
Loss strategy	Carry forward indefinitely, back 3 years

📦 Knowledge Box: Preparing for Client Interviews

Ask clients upfront:

Do you have non-registered investments?
Did you sell any investments this year?
Do you have records of purchase prices/ACB?
Did you borrow to invest?
Do you pay investment advisor fees?

🧩 Getting these answers early saves HOURS of frustration later.

🎯 Final Thoughts

Investment tax returns are common, and mastering them makes you a highly valuable tax preparer. Focus on:

Understanding slips
Valid deductions
Accurate ACB tracking
Knowing what CRA reviews

Build confidence here — it’s a core skill for every professional tax preparer. 🚀

🎯 General Rule for the Deductibility of Investment Expenses (Canada)

When preparing tax returns for clients with investments, it’s crucial to understand what investment expenses are deductible — and what are not. The CRA has clear rules, and misunderstanding them can lead to audit issues and disallowed deductions.

This guide gives you a practical, beginner-friendly foundation. ✅

📌 Core Principle: Expenses Must Directly Earn Investment Income

The golden rule for deducting investment expenses in Canada:

✅ An expense is deductible only if it is directly related to earning investment income.

If your client is not currently earning investment income, expenses related to hoping or planning to invest are not deductible.

Example: A client buys books and pays for stock-market courses to “learn investing.”
❌ These costs are NOT deductible — even if they intend to invest later.

🟩 ✅ Deductible Investment Expenses (Direct Link Required)

These are commonly allowed:

Deductible Expense	Example / Notes
✔ Interest paid on money borrowed to invest	Margin account interest, investment loan interest
✔ Investment management fees	Fees paid to advisors for managing taxable investments
✔ Accounting fees to prepare returns with investment income	If tied to reporting investment income
✔ Certain investment counsel fees	Professional fees for managing portfolios

📌 These must relate to taxable, non-registered investments (not RRSPs, TFSAs, etc.).

🟥 ❌ Expenses NOT Deductible

Even if they seem investment-related, CRA disallows:

Not Deductible	Examples
❌ Financial books & training	Courses, books, webinars, seminars
❌ Newsletters & research subscriptions	Stock tips, trading newsletters
❌ Investment clubs / trading seminars	Day trading events, real estate clubs (usually)
❌ Costs for planning future investing	“Learning to invest” is not earning income
❌ Fees inside registered accounts	TFSA, RRSP account fees are NOT deductible

⚠️ CRA specifically denies deducting educational and subscription costs related to investing.

🧠 Why These Aren’t Deductible

The CRA requires a direct income-earning connection.

Learning about investing ≠ earning investment income
Preparing to invest ≠ earning investment income

Think of it like this:

💭 Would this expense still exist if there was no investment income?
If yes → ❌ Not deductible.

📎 Practical Real-World Notes

🔍 CRA frequently reviews “carrying charges” (investment deductions)
📂 Keep receipts & proof of purpose
💼 Expense must relate to taxable investments — not registered plans

✅ If a CRA auditor sees newsletters, seminars, trading courses… expect a disallowance.

⚖️ Tax Pro Tip Box

🧾 Always confirm the source of fees
Investment platforms may charge multiple fee types — only fees directly tied to managing investments in taxable accounts qualify.

💡 Examples for Clarity

Scenario	Deductible?	Why
Pays margin interest on stock trading	✅ Yes	Direct cost of earning income
Buys a “How to Invest” online course	❌ No	Educational, not income-earning
Pays financial advisor 1% fee on non-registered portfolio	✅ Yes	Management fee for investments
Pays same fee inside RRSP	❌ No	RRSP accounts are tax-sheltered
Attends real-estate wealth seminar	❌ No	learning/education motivation

🧾 Common Mistake to Avoid

❌ Claiming expenses when the client has no investment income yet

If there’s no income earned, CRA won’t allow related deductions.

📥 Tax Preparer Checklist

Before deducting investment expenses, confirm:

✅ Client earned investment income
✅ Expense directly helped earn that income
✅ Expense is NOT related to:
- Education
- Subscriptions
- Speculative seminars
✅ Expense is not inside RRSP/TFSA

🟦 Summary Box: Key Takeaway

Rule	Explanation
🎯 Expense must directly earn investment income	Not just prepare for investing
📂 Proof matters	Keep documentation
🚫 No educational/learning expenses	Books, courses, newsletters are out
🏦 Applies to taxable accounts only	RRSP/TFSA fees aren’t deductible

🎯 Final Word

Understanding what qualifies as a true carrying charge is key for beginner tax preparers.

Think of investment deductions like business expenses — only income-producing costs count. Mastering this principle protects your clients and keeps returns CRA-safe ✅.

💼 Deductibility of Management & Advisory Fees as Carrying Charges (Canada)

Understanding the rules around investment advisory fees is essential for tax preparers. Many taxpayers misunderstand what they can deduct, and incorrect deductions can trigger CRA reviews. This guide gives you a clear, beginner-friendly foundation to handle advisory fee deductions with confidence ✅

🎯 What Are Investment Advisory Fees?

Investment advisory fees (also called management fees or portfolio advisory fees) are fees paid to:

Financial advisors
Wealth managers
Portfolio managers
Investment dealers

These fees are often charged as a percentage of portfolio value or as fixed advisory fees for managing taxable investments.

💡 These fees are considered carrying charges — but only when linked to taxable investment income.

✅ When Advisory Fees ARE Tax-Deductible

Advisory fees are deductible when they relate to non-registered investment accounts that earn taxable income, such as:

Self-directed brokerage accounts
Cash investment accounts
Non-registered trading accounts
Investment portfolios generating:
- Dividends
- Interest
- Capital gains

Why?
Because these fees directly relate to managing investments that produce taxable income.

📌 Deduction Claim Location:
Claim as carrying charges on the tax return (line 22100).

❌ When Advisory Fees Are NOT Deductible

Account Type	Deductible?	Reason
RRSP	❌	Income grows tax-deferred
TFSA	❌	Income grows tax-free
RESP	❌	Registered education savings account
RRIF	❌	Registered retirement income fund
Other registered plans	❌	Investment income isn’t taxable

🛑 Important:
It does NOT matter whether the fee is paid inside the account or from a regular bank account —
if it relates to a registered plan, it’s still not deductible.

🧠 CRA Logic Behind the Rule

If investment income is not taxed, the government will not allow a deduction for fees used to earn it.

Simple principle:

No taxable income = No deduction

🏦 Fees That Look Deductible — But Aren’t

Expense	Deductible?	Why
Trading commissions	❌	Included in cost base, not deductible separately
Financial planning fees	❌	Not tied directly to investment income
RRSP / TFSA account admin fees	❌	Registered plan = no taxable income
One-time consulting fees	❌	Planning ≠ managing taxable income

📂 Where to Find Advisory Fee Amounts

Clients may receive advisory fee totals through:

Monthly or annual portfolio statements
Year-end summary reports from investment firms
Online account statements
Advisor fee summary letters

🧾 Advisors often provide an annual fee summary — always request this.

🌟 Practical Tips for Tax Preparers

✅ Confirm the account type — registered vs non-registered
✅ Ask for annual fee statements
✅ Ensure fees relate to investment management, not planning
✅ Flag self-managed discount platforms — often no advisory fee exists
✅ Educate clients early to avoid confusion or denied claims

🧾 Client Interview Questions

Use these questions to avoid mistakes:

❓ Do you pay a financial advisor or portfolio manager?
❓ Are these fees for a non-registered investment account?
❓ Do you have a statement showing the annual fee amount?
❓ Were any of these fees tied to RRSP/TFSA accounts?

📦 Quick Reference Summary

Scenario	Deductible?
Fee for managing non-registered investments	✅ Yes
RRSP or TFSA advisory fees	❌ No
General financial planning fees	❌ No
Trading commission fees	❌ No
Investment income NOT earned	❌ No

🟩 Knowledge Box

✅ Deductible Advisory Fees = Directly related to taxable investment income
❌ Not Deductible = Fees for registered accounts or financial education

🚀 Key Takeaway

As a tax preparer, your job is to:

Identify management fees,
Verify they apply to taxable accounts,
Ensure proper documentation, and
Claim them only when directly linked to earning investment income.

Mastering this rule protects your client — and your practice — from CRA reassessments.

🧾 Clearing Up Confusion: Management Fees on Mutual Funds in Canada

When preparing tax returns for investors, one of the MOST misunderstood topics is whether mutual fund management fees can be deducted as carrying charges.

Let’s make this simple, clear, and bullet-proof ✅

🎯 Key Principle

Management fees charged inside mutual funds are NOT tax-deductible.

Even if the mutual fund is held in a non-registered (taxable) account, you cannot claim those embedded management fees separately on your tax return.

🧠 Why Can’t You Deduct Mutual Fund MER Fees?

Mutual funds charge a Management Expense Ratio (MER) — usually 1%–3% of the fund value annually — to cover:

Fund manager compensation
Research & analysis
Administrative costs
Marketing & dealer fees

But here’s the big point:

✅ The mutual fund deducts these fees internally

❌ Investors cannot claim them on line 22100

The fee reduces the fund’s return before you receive it — so the deduction already happens inside the fund.

This means:

The fund earns interest/dividends/capital gains
It subtracts its own fees
Only the net income is reported to you on your T3 tax slip

So you receive lower taxable income instead of a separate fee deduction.

📊 Example to Understand This

Scenario	Amount
Investment in mutual fund	$100,000
MER (Management Expense Ratio)	1.9%
Annual fee inside fund	$1,900 (approx)

If the fund earned ~3.5% before fees, the investor only sees ~1.5% after fees, because the 1.9% MER was already taken internally.

✅ You benefit indirectly — your reported income is lower
❌ You cannot enter the fee on Schedule 4 as a carrying charge

⚠️ Common Mistake to Avoid

Some investors try to estimate the MER and enter it manually as:

“Management fees / custody fees — $1,900”

🚫 This is not allowed
CRA will deny this deduction if reviewed.

👇 What IS deductible instead?

You can deduct advisory fees ONLY if billed separately AND tied to a non-registered account, such as:

Fees paid to a financial advisor for managing a taxable portfolio
Portfolio management fees charged outside the fund structure

✔️ Separate and billed to you
✔️ Related to taxable investment income
✔️ In a non-registered account

🧾 Where Mutual Fund Fees Show Up Instead

Fee Type	Deductible?	Where It Appears
Mutual fund MER	❌	Already netted inside fund returns
Advisor fee (external, non-registered acct)	✅	Tax return (line 22100)
Advisor fee (RRSP / TFSA)	❌	Not deductible — registered account
Trading commissions	❌	Adjust ACB, not deducted

📦 Quick Reference Box

📌 Embedded mutual fund fees (MER)
❌ Not deductible on your tax return

📌 Advisor fees billed separately for taxable accounts
✅ Deductible

💡 Tax Preparer Tip

When reviewing client documents:

✔️ Look for external advisory fee invoices
❌ Do NOT estimate mutual fund MERs
❌ Do not enter fees based on fund literature or % management fees

If a client insists:

👉 Explain the fee is already deducted within the fund before income is reported.
👉 Show them their T3 — the income is already reduced!

🧠 Final Takeaway

Mutual fund MER fees are NOT tax-deductible because the fund already deducts them internally and reports net income.

Understanding this protects you from mistakes AND prevents clients from getting CRA reassessments.

💸 Deducting Interest Paid on Investment Loans (Canada)

Borrowing to invest is a powerful strategy — but the tax rules matter!
This guide breaks down when interest is tax-deductible and when it’s not, so new tax preparers and investors can avoid costly mistakes.

📌 What Is an Investment Loan?

An investment loan is money borrowed with the goal of earning investment income (e.g., dividends, interest, rental income).

✅ If the borrowed funds are used to earn taxable investment income, the interest is usually deductible.

❌ If the borrowed funds are used to invest in tax-sheltered accounts, the interest is NOT deductible.

✅ When Interest Is Deductible

Investment Type	Interest Deductible?	Why
📈 Non-registered investments (stocks, bonds, mutual funds)	✅ Yes	You’re earning taxable income
🏢 Investment property (rental property)	✅ Yes	Deducted on T776 — Statement of Real Estate Rentals
🏢 Business loans used to generate business income	✅ Yes	Deducted on T2125 — Statement of Business Activities

💡 Key rule: You must demonstrate the purpose of the loan was to earn taxable income.

❌ When Interest Is NOT Deductible

Account	Deductible?	Reason
🛡️ RRSP (Registered Retirement Savings Plan)	❌ No	Income grows tax-deferred
📦 TFSA (Tax-Free Savings Account)	❌ No	Income grows tax-free
🎓 RESP (Registered Education Savings Plan)	❌ No	Registered account, tax-preferred
🧾 RRSP/TFSA contribution loans	❌ No	Contribution loan interest is not deductible

🧠 Easy Memory Trick

Tax-Sheltered = No Interest Deduction
Taxable = Deduction Allowed

If the investment gains aren’t taxed → CRA doesn’t allow deduction.

📊 Example Scenario

Scenario	Deductible?	Explanation
Borrow $100,000 to buy stocks in non-registered account	✅ Yes	Stocks generate taxable dividends/capital gains
Borrow $10,000 for RRSP contribution	❌ No	RRSP grows tax-sheltered
Borrow $8,000 to invest into TFSA	❌ No	TFSA grows tax-free

📎 Where Do You Claim It?

Situation	Form / Line
Interest on investment loans (non-registered account)	T1 – Line 22100 (Carrying charges), via Schedule 4
Rental property mortgage interest	T776 — Real Estate Rentals
Business loan interest	T2125 — Business Activities

📂 Documentation Checklist for Tax Preparers ✅

Make sure clients keep:

🧾 Loan agreement
📑 Annual interest statements
📊 Brokerage/account proof showing funds went to investments
📚 Proof investment generates taxable income (not TFSA/RRSP)

🤓 CRA can ask for proof — deductions may be denied without clear documentation.

⚠️ CRA Audit Tip Box

🚫 Do NOT deduct interest if funds were used for personal use — even temporarily.
Moving money around? CRA will trace the funds. If the loan was ever used personally, deduction may be reduced or denied.

⭐ Pro Tip: Mixed-Use Loans

If a loan is used partly for investment and partly personal, only the investment portion interest is deductible.
👉 Track use percentage carefully!

Example:

60% used for stocks → deduct 60% of interest
40% used for car → not deductible

📥 Common Mistake to Avoid

Mistake	Why it hurts
Claiming interest on RRSP/TFSA loan	CRA will deny — not allowed
No proof linking loan to investments	CRA can reverse the deduction
Borrowing to invest in tax-exempt funds	Not eligible for deduction

💡 Final Takeaway

To deduct investment loan interest, the investment must generate taxable income.

If it’s RRSP, TFSA, RESP → No deduction
If it’s non-registered taxable investing → Yes deduction

📚 Bookmark-Worthy Summary

✅ Borrow to invest in taxable accounts → interest deductible
❌ Borrow to invest in RRSP/TFSA → interest NOT deductible
🧾 Keep documentation
🧮 Mixed-use loans must be prorated

📌 Don’t Miss These Carrying Charges on Client Files — T-Slip Reporting (Canada)

When preparing tax returns for investors, one of the most overlooked deductions is carrying charges — especially investment management fees hidden inside T-slip summaries. Missing these means your client may lose hundreds or even thousands in tax savings.

Let’s ensure you never miss them again ✅

🔍 Why Carrying Charges Matter

Carrying charges related to investment income (e.g., investment advisor fees, account fees) can be deducted on the tax return, reducing taxable income.

These apply only to non-registered investment accounts, since:

RRSPs ❌ do not allow fee deductions
TFSAs ❌ do not allow fee deductions
Non-registered accounts ✅ allow deduction of investment management fees

🧾 Where These Fees Often Hide

Most beginner tax preparers check the T5 slip only — but that’s not enough.

👀 The fees are often found in the investment account summary attached to the T-slip, not the slip itself.

Look for items like:

Account Fees
Investment Management Fees
Advisory Fees
HST on Fees

These may appear on page 2 or the back of the summary, not the front slip.

💡 Example

A client shows a T5 with $2,900 in dividends.
Attached statement shows:

Description	Amount
Account Fee	$4,502.45
HST on Fees	Included

If you miss this…
Client loses a tax deduction of $4,502.45
Potential tax savings lost: $1,500 – $2,300+

✅ Key Rule

If you see a T5 or T3 → ALWAYS check the attached statements for fees

🎯 How to Identify if It’s Deductible

Situation	Deduction Allowed?	Why
T5 / T3 issued	✅ Yes	Means non-registered account
RRSP	❌ No	Registered account — not taxable
TFSA	❌ No	Tax-free account
Statement shows management fees	✅ Yes	Claimable carrying charge

📂 Where to Claim on Tax Return

Line 22100 — Carrying charges and interest expenses
via Schedule 4 (Carrying Charges Worksheet)

🔐 CRA Logic to Remember

If the account issue a T5/T3 ➜ The investment generated taxable income
Therefore ➜ Related fees are deductible

RRSPs & TFSAs never issue T5/T3 ➜ fees from those accounts are not deductible

⚠️ Common Mistakes New Preparers Make

Mistake	Result
Only entering numbers from the slip front	❌ Missed deduction
Assuming fees are always mailed separately	❌ They may be embedded in slip summary
Not reviewing PDF statements fully	❌ Hidden fee lines overlooked
Claiming fees from RRSP/TFSA	❌ Disallowed by CRA

📌 Must-Do Checklist

Before filing:

✅ Check T5/T3 AND attached statements
✅ Look for “account fees / advisory fees / HST”
✅ Confirm account is non-registered
✅ Enter fees on Line 22100 / Schedule 4
✅ Save fee statement for CRA review proof

⭐ Pro Tip Box

💡 If it’s printed on a T-slip summary, it’s almost always deductible.
Some institutions now intentionally report fees here so clients don’t miss them.

📝 Quick Investor Client Question to Ask

“Can you share the full investment account statements along with your T-slips?”

Never rely on only the slip face — always ask.

🎉 Final Takeaway

Investment fees in non-registered accounts are deductible — but they’re often hidden.
As a tax preparer, catching them can deliver huge tax savings and make you look like a pro 💪

🧾 Are Tax Preparation Fees Deductible as a Carrying Charge? (Canada)

This is one of the most common questions you’ll face as a tax preparer — especially from clients who invest.

💬 Client question you will hear:
“Can I deduct the fee I paid you to prepare my tax return?”

Let’s break it down clearly 👇

🚫 General Rule: No, Tax Prep Fees Are NOT Deductible

The CRA generally considers tax preparation fees to be personal expenses, meaning they cannot be claimed as a deduction on the personal tax return.

❌ Not deductible under carrying charges
❌ Not deductible as accounting fees on T1
✅ Deductible only in certain business or rental situations (discussed below)

🎯 Exception for Investors: Partial Deduction MAY Be Allowed

If part of the tax preparation work specifically relates to investment income, capital gains tracking, or investment advisory guidance, that portion may be deductible as a carrying charge.

Key concept:
Only the portion of fees directly linked to earning investment income may be eligible.

✅ Example Breakdown

Situation	Deduction Allowed?	Notes
Preparing full personal return	❌ No	Normally rejected by CRA
Part of fee tied to investment reporting	✅ Possible	Must be reasonable & supportable
Fee tied to rental property reporting	✅ Yes	Deduct on T776 rental statement
Fee tied to business statement prep	✅ Yes	Deduct on T2125 business form

📌 Practical Example

Client paid $300 for tax preparation.

If investment schedules required extra work (ex: capital gains reporting, investment income reconciliation), you may divide fee like:

Portion	Amount	Reason
Personal return	$200	Personal — non-deductible
Investment-related work	$100	Can be considered carrying charge

The $100 may be claimed as a carrying charge on Line 22100.

✍️ Note: CRA may request an invoice breakdown. It must look reasonable and specific.

⚖️ CRA Audit Reality

Filing Approach	CRA Risk	Comment
Claim full tax prep fee	🔴 High	Usually denied
Claim nothing	✅ Safe	Conservative & compliant
Claim investment-related portion only	🟡 Moderate	Acceptable if supported

🧠 Best Practice for Tax Preparers

To avoid problems and help clients:

✅ Break down invoices into itemized services
✅ Clearly label investment-related portion
✅ Keep records showing time spent on investment calculations
✅ Avoid inflated allocations

📝 Invoice wording example:
“Preparation of T1 return including investment schedules, capital gains reconciliation and advisory support — $X portion attributable to investment income.”

⚠️ Avoid These Mistakes

Mistake	Issue
Claiming full tax prep fee	Usually denied
Claiming fees for RRSP or TFSA reporting	Registered accounts don’t allow deductions
No invoice breakdown	CRA rejects deduction
Claiming fee without investment income	Makes no sense — always disallowed

💡 Tip for New Preparers

If unsure which approach to take:

Conservative: Don’t claim the fee
Moderate: Claim only documented investment portion
Aggressive: Claim full amount — expect CRA to reverse on review

📎 Key Takeaway Box

✅ Tax prep fees usually not deductible
✅ Only investment-related portion may be claimed
✅ Must be clearly broken down and reasonable
✅ CRA reviews these often — documentation is critical

🚀 Final Note

This rule often surprises taxpayers — your job is to guide them professionally.

A helpful script to use with clients:

“Tax prep fees are generally personal and not deductible.
However, the portion related to investment schedules can sometimes be claimed — I’ll break this out clearly for you.”