Hi there
Just a quick question regarding tax and logistics of borrowing the equivalent of a deposit amount from family who are resident overseas, and have their money overseas.
I am in a position where I could borrow enough cash to use as a deposit on an IP from overseas family.
If we set up a formal loan agreement with no principal repayment, just a yearly payment of interest on the loan at an agreed percentage, how would this be dealt with by the ATO, and what would we need to do i.e. register it with ATO?
Thanks
Just a quick question regarding tax and logistics of borrowing the equivalent of a deposit amount from family who are resident overseas, and have their money overseas.
I am in a position where I could borrow enough cash to use as a deposit on an IP from overseas family.
If we set up a formal loan agreement with no principal repayment, just a yearly payment of interest on the loan at an agreed percentage, how would this be dealt with by the ATO, and what would we need to do i.e. register it with ATO?
Thanks