Hi. I am purchasing a property for R1m. I have obtained a loan from the bank for R800K, and my dad will be giving me R200K to pay the difference of the purchase price. Please advise what tax implications there are on this-
it is a living inheritance, payable to him only IF and WHEN he requires it. Or basically I dont have to pay him back. Thanks.
Your dad is loaning you the money, however he can donate R100 000 to you each year tax free and write off the loan that way. Otherwise you will need to charge interest on the loan to avoid donations tax.
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