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Private Lending & Conventional Mortgage Advice

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Fernando Cardona
  • Spring Hill, FL
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Private lending tax issues if using a line of credit

Fernando Cardona
  • Spring Hill, FL
Posted Feb 17 2018, 16:16

I have been reading a book called the bankers code 

It talks about becoming the bank and using lines of credit from a bank to then do private lending.

If anyone is actually doing this and could give me some input about the tax implications.

Private lending tax implications when using line of credit. Suppose you lend at 10% and use a line of credit from a bank at 6%. Regarding the tax implications would you be subject to paying the difference in taxes. Say 4%?  Or would you be subject to taxes on the whole 10%?

Also tax implications in general on private lending, recommendations on how to keep track the amount to pay on taxes.

Any help is much appreciated.

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