Changes to the deduction for safety deposit boxes

If you incur certain expenses (called carrying charges) to earn investment income, the charges are tax deductible. They are claimed on line 221 of your tax return.  The cost of renting a safety deposit box used to be tax deductible carrying charge. But the deduction for safety deposit boxes was no longer allowed for taxation years beginning after March 20, 2013.

For most individuals taxpayers, 2013 will be the last year to claim the deduction of safety deposit boxes. The deduction will no longer be allowed for the 2014 and subsequent taxation years.

The change applies to corporations too. Corporations will no longer be allowed to claim a deduction for safety deposit boxes for taxation years commencing after March 20, 2013.

Tax on interest, dividends, and capital gains

 

Additional information