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Family Loan - is it taxable?

Posted 31 January 2014

I loaned my sister R50,000 and she is currently paying me back R2,000 per month at 5% interest per year.Do I need to declare any of this on my tax return?

TaxTim Marc TaxTim Marc said:
3 February 2014 at 6:00

As you are earning interest on this loan you would need to declare it as income, however on that amount you would not pay any tax as the interest earned is less than the exemption threshold.

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