If you use a safety deposit box for safekeeping of your
investments, you can claim the cost
as a "carrying charge" on line 221 of your tax return, if the cost has
been incurred in order to earn income from your investments. For information on this and other investing
related costs (both deductible and non-deductible), see our
article regarding investing
related interest expense.
2013 Budget proposes to eliminate this deduction, starting
with the 2014 tax year for individuals. This is because with electronic
records being the norm, it is more likely that the use of a safety deposit box
is a personal use, rather than being related to earning investment income.
Tax Tip: Don't forget
this often-missed deduction.
Revised: April 26, 2013