I have a purchase in mind. It is a commercial property.
My brother is lucky enough to have a couple of hundred thousand in savings. He is 60 years of age and married with no borrowings and a income of about €30,000. He is PAYE. We have always helped out one another throughout our lives and have got on very well.
My question is what taxation issues would my brother have if I borrowed €100,000.00 from him at a rate of 4.5% paying him the interest on 31st December of each year. This would be done in a proper written agreement. He would be totally tax compliant and I would want to be able to claim it as an expense. Would it be dirt tax or income tax etc in his case.
I know that posters will have issues about other aspects of this but it is the taxation issue that I would like clarified before I gon any further.
My brother is lucky enough to have a couple of hundred thousand in savings. He is 60 years of age and married with no borrowings and a income of about €30,000. He is PAYE. We have always helped out one another throughout our lives and have got on very well.
My question is what taxation issues would my brother have if I borrowed €100,000.00 from him at a rate of 4.5% paying him the interest on 31st December of each year. This would be done in a proper written agreement. He would be totally tax compliant and I would want to be able to claim it as an expense. Would it be dirt tax or income tax etc in his case.
I know that posters will have issues about other aspects of this but it is the taxation issue that I would like clarified before I gon any further.