Spreadsheet for Canadian investors who borrow against their home
HELOC Interest Tracing Ledger
The CRA lets you deduct HELOC interest only on money you can trace to an investment. This workbook keeps that paper trail: every draw, what it bought, the interest you paid, and one number for line 22100 that you can hand to your accountant.
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One-time payment through Stripe, no subscription. Instant download. 30-day money-back guarantee: see the refund policy and terms of sale. It records and calculates; it is not tax advice, so check the result with your accountant.
Why the paper trail matters
Interest is generally deductible only when the borrowed money has a current use of earning income, and you may have to show it. If a HELOC draw is partly spent on something personal, invested in a TFSA, or left sitting before it is invested, only part of the interest qualifies, and mixed use can put the claim at risk. Most people keep this in a folder of statements. The ledger turns it into one record. The HELOC tracing guide explains the rules it follows.
What it does
- Records each HELOC draw, what it bought, the date, the amount invested and whether the investment can pay dividends or interest
- Counts only money actually invested, from the day you invested it, in a non-registered account, so a partly invested draw or a TFSA purchase cannot inflate the claim
- Weights each month by the days every draw, investment and repayment was in effect, instead of using a rough average
- Splits each repayment between the investing and personal parts in proportion, as the CRA's folio describes, so you cannot pay back the personal part first
- Flags draws with no matching investment, draws invested late (30 days by default, which you can change), registered accounts and dates outside the year
- Gives a line 22100 summary, a tracing check, the balances to carry into next year and a year-end checklist for your accountant
HELOC Interest Tracing Ledger
$29 CAD one-time. Instant download. 30-day money-back guarantee.
How you use it (about 10 minutes a month)
- 1
Setup
Enter the tax year, your lender and your balances on January 1.
- 2
Draws
One row per draw: date, amount, what it bought and where it is held.
- 3
Repayments
Record principal you repay. The workbook splits it in proportion.
- 4
Interest
Type the interest you actually paid each month from the statement.
- 5
Summary
Check the flags, then give the page to your accountant.
What the sample year shows
The free sample (a PDF of every sheet) has 14 draws on one HELOC. Thirteen are meant for investing. The ledger flags three of them and finds one personal draw:
| Situation | What the ledger does |
|---|---|
| $1,325 drawn, but only $1,025 invested; $300 went to a car repair | Counts $1,025 as borrowed to invest and $300 as personal; flags it as partly invested |
| A draw invested 40 days after it was drawn | Counts it only from the day it was invested; flags it as invested late |
| $500 drawn and put into a TFSA | Not counted as borrowed to invest; flagged as a registered account |
| $400 drawn for a furnace repair | Recorded as personal use, not hidden |
For the year the sample shows $1,101.84 of interest paid, of which $1,069.79 is deductible (97.1% of the balance was borrowed to invest) and $32.05 is not. Sample figures are fictional.
HELOC Interest Tracing Ledger
$29 CAD one-time. Instant download. 30-day money-back guarantee.
Who it is for
It fits if you
- Borrow against your home to invest in a non-registered account, as with the Smith Manoeuver
- Want a record you can defend if the CRA asks
- Make regular draws and want them checked for problems
It is not built for
- Business or rental borrowing, as in cash damming (it traces investing only)
- More than one loan in the same file (use one workbook per HELOC)
- Working out compound interest on unpaid interest (it explains it, but does not calculate it)
Questions
Is this tax advice?
No. It is a record-keeping tool that follows the method described in the CRA's Income Tax Folio S3-F6-C1 and shows its working. It has not been reviewed by an accountant, so ask yours how they want the numbers treated. The method is also on its Start Here sheet.
Do you see my numbers?
No. The workbook runs on your own device. We never receive the figures you type.
Which apps does it work in?
Excel, Numbers and Google Sheets. It is an instant download after payment, and the calculations run when you open the file.
How many draws can I record?
The blank workbook has room for 500 draws.
What if the interest is added to my balance instead of paid?
The ledger uses interest you actually paid, because the CRA generally lets you deduct interest in the year you pay it. Interest added to the balance is compound interest with its own rules, so the workbook explains it and leaves it to your accountant.
What do I do next year?
The Summary sheet shows your December 31 balances, which you type into next year's Setup sheet.
What if it does not suit me?
There is a 30-day money-back guarantee. See the refund policy.
Keep the trail in one spreadsheet
- Instant download
- 30-day money-back guarantee
- Pay securely with Stripe