Lending Money as 1st Position tax question...

[Nolan Gottlieb]

If I'm wanting to lend money to someone with my private money, for them to purchase or refinance and I'd be recorded as the 1st position lender, would that money be a tax write off? Obviously, the interest I earn from lending would be taxable income, but how would the initial investment be treated for tax purposes?

[Chris Seveney]

Quote from @Nolan Gottlieb:

If I'm wanting to lend money to someone with my private money, for them to purchase or refinance and I'd be recorded as the 1st position lender, would that money be a tax write off? Obviously, the interest I earn from lending would be taxable income, but how would the initial investment be treated for tax purposes?

You are the lender, what they do with the money is irrelevant to you. You have no write offs. If you give them $1M and you collect $100k in interest, that interest is taxed at ordinary income rates. Once they pay you back you get back your investment. 
Hope that makes sense