I'm about to purchase a property through a trust and will loan the trust the 30% plus costs. Question: if the trust pays back principal and interest, is the principal payable back "tax free"?
My thinking is that it is not income for me - I loaned it; it is not a distribution, it's a repayment, and it's not retained and therefore taxable at the trustee's marginal rate.
Anyone care for a shot at this?
Bob
My thinking is that it is not income for me - I loaned it; it is not a distribution, it's a repayment, and it's not retained and therefore taxable at the trustee's marginal rate.
Anyone care for a shot at this?
Bob