# Loan between spouses - when is the interest due ?



## cynicalinvestor (Jan 16, 2010)

Hello,

I vaguely knew the interest has to be paid by 31st of December but I found on this link taxtips 


> The interest on the loan must actually be paid by Mrs. A to Mr. A by January 30th of each year, or the income from the investments will be included in Mr. A's income.


On the CRA site I could not find anything . 

Could anyone point me to the CRA link where the date is specified or confirm whether it is 31 Dec or 30 Jan ?

Thank you


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## Young&Ambitious (Aug 11, 2010)

My understanding is that the income would be attributed back to you as the loan would be considered a tax avoidance scheme per a quick scan of: http://www.cra-arc.gc.ca/E/pub/tp/it511r/it511r-e.txt. Therefore the interest due date would be irrelevant. 

I don't know what your situation is but I would recommend making investments under the your wife's name to the full extent of her taxable income. 

I too would be interested in others' comments on this...


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## TaxGuy (Apr 7, 2009)

If you lend your spouse money and they use the funds to invest, attribution will apply unless they pay interest at no less than the prescribed rate within 30 days of tax year end. 

The spouse must pay the loan interest, with their own money, no later than January 30th.


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