Content about debt and tax tends to go wrong in two ways: it overstates what a strategy will do for you, or it hides the rule behind vague warnings. We try to avoid both. We explain the mechanics plainly, point to the rule that decides the tax result, and leave the outcome to your facts.
Who Writes Our Content
Our articles are written by Freedom10 and published under the name of the co-founder responsible for them, Sean Smith or Devon Noble. Their backgrounds and licences are on their author pages. Freedom10 has Smith Manoeuvre Certified Professionals on the team.
We write about the strategies we work on every day: rental cash damming, the Smith Manoeuvre, debt swaps and reviewing setups that are already running.
Where Our Information Comes From
When we describe a tax rule, we work from the primary sources and cite them so you can read them yourself:
- The Income Tax Act, in particular section 20(1)(c) on the deductibility of interest on borrowed money
- The CRA's Income Tax Folios, in particular S3-F6-C1, Interest Deductibility, which discusses how the use of borrowed money is traced
- Court decisions, such as the Supreme Court of Canada's 2001 decision in Ludco
When we cite a court decision, we say what the court decided first, then how it may relate. When we cite CRA guidance, we treat it as the CRA's reading of the law, not as approval of any person, plan or implementation.
Our content is written and checked by Freedom10. No accountant, lawyer or government body has reviewed or approved any strategy for your situation, and nothing on this site should be read that way.
How We Write About Tax
We state the mechanics with confidence: which account pays which bill, in what order, and what each borrowed dollar is used for.
We are careful with the tax result, and we put that care in the wording itself. Interest “may be deductible”, “where the requirements of the Income Tax Act are met”, and whether it applies to you “depends on your facts”. We don't say a strategy will save you tax, and we don't promise results.
When we use an illustration, it shows how money moves, not what you will save. Every assumption sits next to the numbers, and your own numbers will differ. We don't publish client results, testimonials or projections of what a strategy will do for you.
Dated Updates
Tax rules, CRA guidance, interest rates and lending products change. Each article shows the date it was published and, once it has changed, the date it was last updated, so you can judge how current it is. When something material changes, we update the article and its date.
Pages about interest deductibility are the first we revisit when the CRA publishes new guidance on rental income or interest.
Corrections
If we get something wrong, we fix it and update the article's date. If a correction changes the substance of what an article says, we note the change on the page.
If you spot an error, please contact us.
Transparency
Freedom10 is a financial strategy and education company. We help Canadian landlords and homeowners understand and implement rental cash damming, the Smith Manoeuvre and debt swaps. Our content is meant to help you make informed decisions, whether or not you work with us.
Our content is education, not tax advice. Freedom10 is not a tax advisor, accounting firm or law firm. We do not prepare tax returns or give personalized tax, legal or financial advice.
Freedom10 is not a mortgage brokerage and does not arrange mortgages. You choose who handles your mortgage: a licensed agent at Tango Financial Mortgage (ON) Corp. (Brokerage License #13691), or any other mortgage professional or lender you prefer. Our co-founders' licences are listed on their author pages and in the site footer.
You should always seek independent tax advice if you are thinking about implementing these strategies.