Ok, a hypothetical question here. Let's say I have invested in managed funds and also used a margin loan. I used funds from a few different loans (lines of credit) to purchase the mgd funds. Somewhere down the line I gave my bank possession of an unencumbered IP to get a new loan to pay out the margin loan. A while later I sell the mgd funds at a loss (due to GFC). From the proceeds of the sale I pay back the initial loans (lines of credit) and then access the funds again to reinvest (keeping the money still deductable). Because the mgd funds had fallen in value, there wasn't enough (from the sale) to pay the loan that was used to pay out margin loan, so this loan still stands. Is that loan (the one that has IP as security) still deductable now?