u/DusTeaCat

Hi everyone,

I’m planning on allowing my brother to use my Line of Credit to help purchase his starter home. It will be a lump sum that he will payoff within 5 years. He’s agreed to pay whatever interest my LOC will charge.

I don’t intend on profiting off this. Do I need to include the interest as a part of my income? Logically whatever interest I ‘earn’ is offset by the borrowing cost of said loan.

I already know the many risks that comes with this. I will likely write up some agreement. Worst case scenario this is a gift.