Does anyone know the answer to this? (paying, rate, lawyer)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
A friend has asked me to lend him 150K for 60 days. He'll pay 5% interest for that time, and repay the loan in 60 days. My question is this, if I pull the money out of my savings, will I have to pay income tax on the 150K or just on the interest. The money will be back in my savings after 60 days.
You are rich... give it to him.
If you have 150k in savings, I see no reason that you don't have millions in other assets.
And he would not ask for it, if he was not good for it... him borrowing 150k is like my friend asking me for $1000.00. No big deal if he does not pay me back.
A friend has asked me to lend him 150K for 60 days. He'll pay 5% interest for that time, and repay the loan in 60 days. My question is this, if I pull the money out of my savings, will I have to pay income tax on the 150K or just on the interest. The money will be back in my savings after 60 days.
You would be giving him a personal loan. You will pay income tax on the 5% profit but not n the 150,000.
The ONLY way I would do this is if he gives me as collateral property/item that has double the value of what I'm loaning. And even then I don't know if I would go for it. If you do it I would charge 5%. If not paid on time the collateral is to be sold to pay off loan. The remainder is to be returned to your buddy. I strongly suggest you get a lawyer to write everything up. If you do go through with it. Which I wouldn't. Your buddy wants to borrow from you because he can't get a loan on his own or fast enough to do whatever his investment is
Quote:
Originally Posted by Slytrix
No way Jose'....
If they have mucho collateral in case they default please collect way more than 5% for this short term loan.
You do realize that 5% interest that you will only collect $1,250 for risking (and it is a risk) $150,000. Nope
Might want to redo the math. I'm coming up with $7500
Last edited by Electrician4you; 07-04-2016 at 07:23 PM..
if you want to loose a friend or a family member in a real hurry.........lend them money
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
