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Re: Tax treatment of loan from father's company

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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!

 

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Devotee Registered Tax Practitioner

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@PBJ 

 

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

 

Otherwise give the ATO a call.

 

Duncan

1 REPLY 1
Highlighted

Best answer

Devotee Registered Tax Practitioner

Replies 0

@PBJ 

 

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

 

Otherwise give the ATO a call.

 

Duncan