10 June 2013 STEP Canada Roundtable, 2013-0480271C6 - Prescribed Rate Loan - 2013 STEP Roundtable Q 2 -- summary under Subsection 74.5(2)

Can the interest rate on a loan to a spouse or other family member remain fixed at the current prescribed rate of 1% (so that there is no income attribution) where the loan is a demand loan with no term, or it has a term of say 20 years? CRA stated:

Income and gains will not be attributed to the transferor (pursuant to subsections 74.1(1) and (2), and section 74.2) if the loan is set at the prescribed rate "at the time the indebtedness was incurred" as stated in subsections 74.5(1) and 74.5(2).

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Topic
Income Tax Act - s. 74.5(2)
Tagline
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
312636
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
345624
Extra import data
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