Claim van for tax?

I

IrishGold

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A family member is having difficulty getting credit from the bank and has asked me to help him get a van and some specialist equipment he needs for his business. I was thinking getting a lease agreement set up to set out interest, repayment terms etc.... to keep it official.

What I want to know is can I claim the cost of the van and equipment against the income I'll get? The van will have to be in his name for insurance etc... does this matter?

Thanks,
Gold
 
You are giving him a loan and he is going to pay you back with interest.

You will be subject to income tax PRSI and USC on the interest. The repayment of the loan itself is not taxable. You don't own the van or machine so you can't claim for them. Your friend will get capital allowances on them allowing him to pay you back.
 
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