Using other peoples money to invest

[dcmdinel]

Hi everyone,
I work in the financial industry and am planning on investing money for friends and family. I will be borrowing money from them and promising a fixed rate return. I will be using an investment contract which was reviewed by a lawyer.

My question is the following. What will be the tax implications of this. I would like to deduct the interest payed on the money borrowed to invest. My clients will also need to pay capital gains tax on the interest they receive. What paperwork will be necessary for tax reporting?

Are there any other details I may have over looked? Thanks in advance for your help.

 

[justalayman]

Are there any other details I may have over looked?

yes.

I work in the financial industry and am planning on investing money for friends and family. I will be borrowing money from them and promising a fixed rate return.

either you are investing their money for them or you are borrowing money for you to invest. Your suggested plan is you investing your money that you happened to borrow.

 

[JETX]

US law only....

 

[Antigone*]

I smell a ponzie a'brewin