Can i claim interest on money I have borrowed (loc) to loan to someone else,for them to purchase their PPOR? i figure if i am charging them extra interest,then this becomes deductable,as it then becomes “an income producing venture”???? Any thoughts??[blink]
Hi Misty,
Provided you declare the income too.
Derek
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Misty1
If you charge a higher rate than you are paying, you will need to declare income and pay tax. If you charge the same, then it’s a net of 0, so no problem.
If you charge less and try to claim it as a loss, the question will come back as to what ‘investment’ or gain you expect to get out of the loan.
IMO you would be best to charge what you are being charged for a zero effect.
Cheers
Mel
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