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P2P Lending Tax Clarification

  • 04-01-2019 4:40pm
    #1
    Adren
    Registered Users Posts: 75 ✭✭


    Hi there,

    I have searched both boards, and askaboutmoney a little and have discovered that interest that is earned, must be declared as income tax.

    However, my question is, if the money stays within the platform, and is automatically reinvested, do I still have to pay income tax every year?

    If this is the case, that I must pay tax on all interest yearly, what happens if my investment takes a large hit in year 3, and potentially lose half my investment, can I claim back tax I have paid previously?

    Many thanks,
    Mark


Comments

  • #2
    ct5amr2ig1nfhp
    Closed Accounts Posts: 5,019 ✭✭✭ct5amr2ig1nfhp


    Short answer yes. The interest is treated as income tax.

    The revenue guidelines for p2p lending should help you. See here. Specifically "the taxation treatment of interest earned by a company or individual lending to companies or non-residents through peer to peer lending or crowd funding."


  • #3
    Strettie11
    Registered Users Posts: 231 ✭✭Strettie11


    If your investment takes a hit you are not allowed set any bad debt against your interest earned


  • #4
    vargoo
    Registered Users Posts: 737 ✭✭✭vargoo


    In certain
    circumstances Pay Related Social Insurance (PRSI) may also be payable on the interest received.

    Eh, very helpful this, is it or isin't it?


  • #5
    ct5amr2ig1nfhp
    Closed Accounts Posts: 5,019 ✭✭✭ct5amr2ig1nfhp


    Not everyone has to pay PRSI. There are exceptions etc. So the statement is factual. ��


  • #6
    vargoo
    Registered Users Posts: 737 ✭✭✭vargoo


    Under what section on the Form12 do you actually put this under?


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  • #7
    scheister
    Registered Users Posts: 1,299 ✭✭✭scheister


    vargoo wrote: »
    Under what section on the Form12 do you actually put this under?

    I have taxed them as below
    Linkedin/grid finance untaxed income arising in the state
    Non Irish income other foreign income including rent


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