Hi,
I am planning on pulling out equity from my home loan to assist my family member to purchase his home. He has agreed to repay the monthly mortgage repayments which will be a Principal and Interest loan.
In this type of agreement will the money that I received for the repayment of the loan be considered taxable?
Hi @Wuahh,
How nice of you to help out your family member!
It really depends. While you may not need to pay tax on the repayments themselves, you may need to pay tax on the interest component (if any). This is because interest is considered income and is assessable for tax purposes.
Check out this similar post for more info.
I suggest reaching out to our tailored technical assistance team for an answer specific to your situation.
Hi @Wuahh,
How nice of you to help out your family member!
It really depends. While you may not need to pay tax on the repayments themselves, you may need to pay tax on the interest component (if any). This is because interest is considered income and is assessable for tax purposes.
Check out this similar post for more info.
I suggest reaching out to our tailored technical assistance team for an answer specific to your situation.
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