SunPraiser_

My non-registered investment account is in my name only. Is it possible to add my wife as an account holder or would I have to open a new account?

I'm looking to do this for a Wealthsimple account and I can't find the answer anywhere.

If you are executing the Smith Manoeuvre using ETFs that generate return of capital, the usual advice for ensuring that 100% of the HELOC interest remains tax deductible is to reinvest all distributions or use them to pay off the HELOC.

But suppose I'd like to move dividend income out of the investment account to use for other purposes while also reinvesting the RoC. The HELOC interest should remain 100% tax deductible. However this is complicated by the fact that at the time you receive a distribution you do not know exactly how much of it is RoC (normally you'd have to wait until you receive a T3 slip).

So what I propose is this: Based on the % of RoC in the ETF's previous distributions,

Like many others I'm considering jumping into the Smith Maneuver but one aspect I'm not entirely confident about is using the HELOC to pay for its own interest and then claiming interest on this interest as part of the SM tax deduction.

I've seen some debate as to whether or not this is actually a "legal" deduction as far as the CRA is concerned. Can anyone confirm that using a HELOC to pay for its own interest then claiming a deduction for interest on this interest is in fact acceptable to the CRA (assuming it's used for income-generating investments in a non-registered account)? Has anyone here had their SM activity audited by the CRA and was able to get through it without bad consequence