0

I provided a close friend of mine a loan to help his company through Covid-19 times. The loan has an annual interest rate of 6%. Am I able to deduct the loan amount from my taxes?

1
  • 1
    All tax questions require us to know the country. Though I suspect the amount you loan isn't going to be tax deductible. It might also help if you mentioned any paperwork that was involved. May 18, 2020 at 10:18

1 Answer 1

4

Am I able to deduct the loan amount from my taxes?

No. It is not an expense as you are expecting payback. If your friend defaults - depending on jurisdiction - you may take the loss in as capital gains loss (I.e. to offset capital gains), but as it is now I don't see a reason on why this would count as a write off. It is not written off. It is a performing loan.

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .