Announcements
Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
Still not sure? Ask the Community

ATO Community

Tax treatment of loan from father's company

This post is archived and may not be up-to-date.

I'm new

Views 551

Replies 1

Hi ATO Community

I am currently in the market to purchase a principal place of residence. My dad has some money saved that is currently held by a company of which he is a shareholder/director. Dad and I have discussed me borrowing a sum of money from him to use towards a house deposit. 

 

I am wondering (a) what is the tax treatment for my Dad's company if it loans me the money? (b) does the loan have to be made at a set interest rate or can we agree on an interest rate between the two of us (eg a rate approxiately the same as bank loans are being offered)? (c) how does the loan get treated for my personal income tax purposes?

 

Any help is much appreciated!

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee Registered Tax Practitioner

Replies 0

@PBJ 

 

I would be speaking to your father's Tax Accountant.

 

Otherwise give the ATO a call.

 

Duncan

1 REPLY 1

Most helpful response

Devotee Registered Tax Practitioner

Replies 0

@PBJ 

 

I would be speaking to your father's Tax Accountant.

 

Otherwise give the ATO a call.

 

Duncan