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Borrowing money from family to buy property tax deductability/shares

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Hello,

 

Let's say I borrow money from family and agree to pay interest at a specific rate (with a contract). Then I use this money to buy an investment property

 

Can I deduct the interest from my income the same way I would be able to if it was a loan from the bank?

 

In addition what if I were to use that money to buy shares? Could I also count that as an expense and deduct interest from income?

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Devotee

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Yes, might I also suggest that the interest rate be set at the market rate.

 

Be mindful that the family member receiving the interest will need to declare it in their tax return as income.

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Most helpful response

Devotee

Replies 0

Yes, might I also suggest that the interest rate be set at the market rate.

 

Be mindful that the family member receiving the interest will need to declare it in their tax return as income.