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Filing Your Return

Safety Deposit Box Fees May Be Deductible on Line 221 - Last year for this is 2013

Income Tax Act proposed s. 18(1)(l.1)

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.

The Federal 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

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