Can I deduct my mutual fund's MER on my tax return?

Gena Katz, a chartered accountant and principal with Ernst and Young, has the answer.

Gena Katz 19 April, 2005 | 1:00PM
Dear Expert,

Can I deduct my mutual fund's MER on my tax return? It would mean that I would need to calculate this amount myself, as it does not show up as a separate item on my investment statements. In addition, is the GST also added to the MER and can I deduct this GST amount on my taxes as well?

Expert Answer:

I assume that the mutual fund investment is held in a non-registered account. The MER and related GST are generally paid from the fund and the unitholders are allocated income after the deduction for these expenses. As a result, these expenses have already been taken into account on the income that is reported to you on your T3 slip. In other words, you have already received the benefit of the deduction and you cannot claim it a second time.

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Gena Katz

Gena Katz