Private Money Lender Tax obligations

[Ed Balado]

I have found a private money lender and she is asking me what her tax obligations will be on her profits.

This will be her first time lending and my first time using private money.

Any advice would be appreciated. Thank you

[Basit Siddiqi]

@Ed Balado

You should tell her to ask her accountant.

It depends on how many loans she originates.
If she originates a few - it would be interest income
If she originates more than a few - she may be deemed in a trade or business which would be taxed slightly different.