All Topics / Legal & Accounting / Borrow from sister, tax deductions on interest paid out to them???

Viewing 2 posts - 1 through 2 (of 2 total)
  • Profile photo of hugoismydoghugoismydog
    Participant
    @hugoismydog
    Join Date: 2011
    Post Count: 17
    June 29, 2011 - 9:23 pm

    Hey all,

    I am just wondering if I borrowed money from my sis & pay her interest, will I be able to get tax deductions on the paid out interest?
    Thank you for your advice.

    Profile photo of luke86luke86
    Participant
    @luke86
    Join Date: 2010
    Post Count: 470
    June 29, 2011 - 10:04 pm

    Yes, I believe you will. You probably should get a loan agreement drawn up so it is fully tracable, but you could probably do one yourself as long as you trust each other.

    Bear in mind that she will have to pay tax in the interest that she receieves.

    Cheers,
    Luke

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.