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Borrowing large sum of money from overseas for investment

Initiate

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Replies 1

Hi

 
I'm planning to borrow a large sum of money to invest in the stock market, and my parents are concidering lending me the money with low interest. They're living overseas and not Australian residents, they'll transfer money from overseas. I have 3 questions about it:
1. Do I need to declare or lodge anything to ATO?
2. Since the borrowed money is for investment and I need to pay interest, can I claim a tax deduction for the interest?
3. Do my parents need to pay tax to ATO on the interest they receive from me?
 
Thank you.
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @oyd8,

 

Generally what we look at is the use of borrowed funds. If your parents are loaning you money and charging you interest, they may have an obligation to report the interest here and in their home country.  We have recently answered a similar post about borrowing from family members and claiming deductions.

 

Please use the links below for further assistance.

 

Links-

Previous post - borrowing from family members.

Interest income.

Interest deductions.

 

All the best.

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @oyd8,

 

Generally what we look at is the use of borrowed funds. If your parents are loaning you money and charging you interest, they may have an obligation to report the interest here and in their home country.  We have recently answered a similar post about borrowing from family members and claiming deductions.

 

Please use the links below for further assistance.

 

Links-

Previous post - borrowing from family members.

Interest income.

Interest deductions.

 

All the best.