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Old 14.12.2013, 20:18
5thSwiss 5thSwiss is offline
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Re: Written statement of borrowing/lending money?

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Thanks everyone. I also read a little other informations. I rwad somewhere that to avoid potential tax issues (taxable gift?) I should charge the standard interest rate in the written statement. But I don't really understand this point. What is the tax consequence of doing or not doing this?
I'm not aware that gifts are taxed in Switzerland. They are taxed in Germany. Charging the standard rate of interest (AFR) is a common precaution in the USA where (for large loans) the interest could otherwise be deemed a gift and also be charged (somewhat inconsistently) as income to the lender. http://apps.irs.gov/app/picklist/list/federalRates.html

A note of any kind serves as a useful reminder. But as others have said, never lend unless you are willing to forgive the loan if circumstances require.

I was, for several years, a bankruptcy lawyer. I know of cases where loans were made by generously helpful people of their life's savings, their retirement nest egg, and all was lost in a bankruptcy by the borrower. (OK, in Switzerland there isn't that sort of personal bankruptcy, but even an order from the Betreibungsamt/Office des poursuites won't garner the money if there is none.
http://en.wikipedia.org/wiki/Insolve...of_Switzerland )
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