Quote:
Originally Posted by Henry17
When holding a mortgage inside of an RRSP is their a limit other than the usury limit on what you can charge yourself with respect to interest?
Yes, the limit is a fair market interest rate on your mortgage. You and the trust that is your RRSP do not act at arm's length. Thus, para. 69(1)(a) applies:
"69. (1) Except as expressly otherwise provided in this Act,
(a) where a taxpayer has acquired anything from a person with whom the taxpayer was not dealing at arm’s length at an amount in excess of the fair market value thereof at the time the taxpayer so acquired it, the taxpayer shall be deemed to have acquired it at that fair market value;"