Tax relief on non financial institution borrowngs

T

teelin

Guest
Hi
If I borrow from friends or family in order to purchase an investment property is it possible to set it up so that I can deduct the interest paid for this loan from my rental income before paying tax on the rental income.

What are the tax implications for the person who loans the money to me, will they pay income tax on the interest I pay them

Teelin
 
Hi

Yes, you can claim the interest as a tax deduction and they must declare it as income for tax purposes. They will be taxed at their top rate plus prsi as appropriate

Brendan
 
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