Turner – Tax Court of Canada indicates that interest carrying charges increased the ACB of a share investment

After finding that a retired professional engineer could not recognize, as a non-capital loss to be carried forward, his losses, including from interest expense, on plowing most of his money into an investment in a public corporation that then went bankrupt, Masse DJ went on to indicate that the individual's interest carrying charges increased the adjusted costs base of his share investment, thereby increasing his capital loss. This view, in fact, was advanced by the Justice lawyer, so that Masse DJ did not review whether it was consistent with Stirling.

Neal Armstrong. Summaries of Turner v. The Queen, 2016 TCC 77 under s. 18(1)(b) – capital loss v. loss and s. 54 – adjusted cost base.