Hello to all. I have a friend who is currently in need of some
financial assistance to buy merchandise for his business. I was
wondering what are the safest possible ways I can lend him the
money and
get it back, also can someone please tell me what kind of taxes
would I
have to pay on interest that he pays me?
At a minimum, you need a promissory note. It would be good to
have a professionally drafted one which contains a legal fees
clause. A secured note is better still. If the borrower has a
house, take a second trust deed as security.
Interest income is ordinary income. Like wages.
McGyver
