I am about to make a simple loan to a family member. I have a contract written up, and a payment schedule that we will both sign as well, along with a witness.

While the interest rate I am charging is fairly low (2%), I know that I need to report the income on my taxes.

What information do I need to collect from the person I am loaning the money to, and what all do I report to CRA for my taxes?

  • Why would a CRA be involved in your taxes? – Norm May 3 '18 at 12:56
  • @Norm CRA = Canada Revenue Agency, who we send our tax paperwork to – Canadian Luke May 3 '18 at 14:37
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    Ahhh... When I see CRA, I think Credit Reporting Agency! I missed the Canadian thing entirely! Now I feel like a big dope. – Norm May 3 '18 at 14:48
  • @Norm T'is alright! Canada isn't the center of the universe either :) – Canadian Luke May 3 '18 at 15:00

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