Hi,
I lent a large sum of money to a family member a long time ago. Now they are able to start paying me back in monthly $2000 instalments (no interest). Does this have any implications for me to need to declare it etc?
Thank you!
Hi @Flower54,
If you're speaking about a private loan arrangement between an existing family member.
If the loan was not provided for an income-earning activity or business-like activity. No interest is being charged on the repayments. Then the money received is not assessable income and does not need to be declared on your tax return.
Any bank interest though you earn though on the repayments in your Australian bank account. Then you will need to declare this in your tax return.
Check out a similar post and our response.
It's important that you keep records such as a written statement and bank records of this arrangement in case we ask for supporting documents at any stage.
Hi @Flower54,
If you're speaking about a private loan arrangement between an existing family member.
If the loan was not provided for an income-earning activity or business-like activity. No interest is being charged on the repayments. Then the money received is not assessable income and does not need to be declared on your tax return.
Any bank interest though you earn though on the repayments in your Australian bank account. Then you will need to declare this in your tax return.
Check out a similar post and our response.
It's important that you keep records such as a written statement and bank records of this arrangement in case we ask for supporting documents at any stage.
22 Apr 2024 · 6 min read time
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