Interest Deductibility for Purpose-Built Rentals: Budget 2024 Update for Canadian Businesses

Is your business dealing with rental housing? If that’s the case, then Canada Budget 2024 has good news for you – There is an expansion to the EIFEL rules (Excessive Interest and Financing Expense Limitation). What does this mean? It implies that there will be an elective exemption for the interest that is incurred on financing, which is used for building or acquiring eligible rental properties. The team of Real estate Accountants at CJCPA decided to break down the latest changes for its readers who have a rental property business in their province. Below, you’ll find the details of the new benefit, and how it may or may not benefit your business. Let’s explore the application details, and how it may potentially increase your tax savings. Let’s get started!