If you give an unsecured personal loan of €20k and agree an interest rate with total repayments owed €22k and they end up in a PIA can you claim anything against your income tax? Total return from PIA over the 5 years is less than €1k so not even interest recouped.
I'm on excellent terms with the debtor & only agreed to be involved in PIA so I'd have voting rights to ensure they get the PIA. I don't know much about tax but we thought since businesses are allowed tax relief on some losses etc I might get something for a bad debt.
Just was wondering, but I'd expect my relative to pay me back at some point in the future if I'd personally put myself out of pocket to help them out. Just saying. Especially if they get back on their feet. I don't feel the same way about someone in relation to an institution where they are genuinely broke - as that is the way business works. Just I'd not be able to live with myself if I didn't pay back my debts.
If you give an unsecured personal loan of €20k and agree an interest rate with total repayments owed €22k and they end up in a PIA can you claim anything against your income tax? Total return from PIA over the 5 years is less than €1k so not even interest recouped.