Contrary to appearances, state institutions may be interested in a family loan. So let’s make sure that everything goes according to the law and learn the basic principles of family assistance.
Family loan and the tax issue
In the case of financial problems, we sometimes use the help offered by the family. The tax office may also be interested in this form of support. The loan may be subject to a 2% tax on civil law transactions. A tax can be avoided for the immediate family. However, the amount of the loan itself is also an important issue.
The loan for all the above-mentioned family members is exempt from tax if its value does not exceed USD 9,637 at one time. If the loan amount exceeds this amount, we are obliged to submit a declaration to the competent tax authority within 14 days of taking possession of the money. It is then necessary to complete the PCC-3 form. A loan from further family members may be exempt from tax as long as its value does not exceed statutory limits.
Problem with repayment of a family loan – what to do?
A family loan can not always involve a refund without a problem. What to do when we borrowed money and we cannot recover the loan? There are three basic outputs. The first is the settlement with the borrower, the second is the sale of debt, and the third is to take legal action.
Online loans are an alternative to family loans. It is enough to meet a few basic conditions to receive such financial support. Therefore, if we do not want to spoil the relationship in our family, it may be better to reach for a loan from a loan company. A credible lender can be found by using, among others, online loan rankings.
Who is the most willing to grant loans to the family?
According to surveys, family loans are most often granted by people between 18 and 24 years old. Nearly 70% of people from this group want to enter into a small contract (usually up to USD 500). The least willing to grant loans are those surveyed aged 35-44. Only every fourth person in this group would be able to grant a family loan.
Research carried out by Wong showed that women (54.9%) are more likely to grant loans, while men (46.7%) are less likely. It was also noticed that villagers more willingly borrow in the family than residents of larger cities. Respondents are not always aware that a family loan is subject to the law and they do not know whether it can be taxed.