Deduction for Safety Deposit Boxes
- Q1. What is changing with respect to the deduction for safety deposit boxes?
- Q2. As an individual, when will this change apply?
- Q3. As a corporation, when will this change apply?
- Q4. Where can I get more information about this change?
A1.Taxpayers are permitted to deduct certain carrying charges incurred to earn income from investments. These charges currently include the cost of renting a safety deposit box.
For taxation years beginning after March 20, 2013, the budget proposes that a deduction of an amount paid or payable in respect of the use of a safety deposit box of a financial institution will no longer be allowed.
A2. Individual taxpayers will no longer be allowed to claim a deduction for safety deposit boxes for the 2014 and subsequent taxation years.
A3. The change applies to all taxpayers, including corporations. For taxation years commencing after March 20, 2013, corporations will no longer be allowed to claim a deduction for safety deposit boxes. This change will not apply to a corporation’s taxation year that begins before March 21, 2013.
A4. The CRA is committed to providing taxpayers with up-to-date information. The CRA encourages taxpayers to check its Web pages often. All new forms, policies, and guidelines will be posted as they become available.
In the meantime, please see the Department of Finance Canada's Budget 2013 documents for details.
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