To face a difficult situation or finance a major purchase, you don’t always have to look very far. Informal loan between friends or family is commonly used to help relatives.
To avoid unpleasant surprises, however, certain rules must be observed.
An operation in the nails
In principle, anyone is free to lend money as they see fit to anyone. That said, in the absence of any written formalism, this operation can be perilous. Because in the event of delay, or even forgetting, of the expected reimbursement, the family quarrel can quickly escalate to the point of ending, sometimes, in court.
To avoid trouble, it is therefore wise to go through a loan agreement in due form, signed by the lender and the borrower. You can also resort to an acknowledgment of debt which will then only be signed by the debtor. In any case, remember to indicate all the information essential to this transaction. In addition to your respective identities, specify the amount borrowed, the expected duration of this loan, the amount and frequency of repayment deadlines, as well as the possible interest rate if you wish.
The tax authorities give slack
Depending on the size of the amount involved, the law requires you to declare this transaction for taxes. Previously, this formality was imposed when the loan exceeded 760 euros. An amount quickly reached. In order to lighten the obligations of individuals, a decree has greatly relaxed this rule. Since September 27, 2020, it is no longer necessary to make a tax declaration as long as the amount loaned is less than 5,000 euros.
Beyond this threshold, it is compulsory to fill out form n ° 2062, available on the official Impots.gouv.fr website, and to attach it to your annual income tax return. Please note: both the lender and the borrower must complete the process. Likewise, any interest received will also have to be declared on your tax.
And by a platform?
These rules only concern loans between individuals made without an intermediary. If you use a crowdfunding platform, specific legislation will apply.