Peer to Peer Interest Taxation

Discussion in 'Tax' started by strettie, Dec 20, 2016.

  1. strettie

    strettie Registered User

    Has anyone got clear advice on what should be entered on your income tax return given below example of interest earned on a peer to peer lending platform

    Gross Interest €100.00
    Platform Fees €12.50
    Loan Defaults €20.00

    Is the taxable amount
    1. Gross Interest
    2. Gross Interest less platform fees
    3. Gross Interest less platform fees less loan defaults
  2. rob oyle

    rob oyle Frequent Poster

    There are other threads on here discussing this matter - my view is that the figure net of platform fees (at least) is taxable, since these fees are an unavoidable expense in receiving this income. I've not come across loan defaults before, what do these relate to? Is this an interest expense from a defaulting loan or reflects the loss of capital?
  3. strettie

    strettie Registered User

    Loan default is the capital sum remaining on loan that will not be repaid.

    Reason I had question on platform fees is Schedule D Case III which does not seem to allow for any deductions
  4. GregBell

    GregBell New Member