How should I ask for an Employer Loan as an Employee?
I would like to ask my employer for a loan. I know IRS guidelines expect it to run at the APR with regards to interest. However, before I ask I would like to be as educated as possible as to what type of affect this could have on my employer. Will he have to pay taxes on the interest gained from the loan payback.
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Will he have to pay taxes on the interest gained from the loan payback
Yes. This is income for the employer and must be declared as income. If their Accounting Dept can find creative (not illegal) ways to handle the loan and associated interest income, then how they file and for how much could vary.
Same concept applies to making a personal loan to family/friends. All of which are highly discouraged because it puts you in a potentially awkward and difficult situation if you default. It would have to be a pretty extreme circumstance for me to consider borrowing money from my employer. There's a lot of potential for things to go south.
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