If I borrow from a bank then lend that money to a family member can I claim the bank interest as an expense if that family member repays the interest to me. I understand that I would have to declare that interest repayment to me as income.
Hi @oldwilliam
You can claim a deduction for interest charged on money borrowed to buy shares and other related investments that you derive assessable interest or dividend income from.
In the case you describe you would not be able to claim the interest charged by the bank as you are not investing the money directly yourself. And yes, you would have to declare the interest paid to you by the family member as assessable income.
766 views
1 replies