Becoming hard money lender out to a project in the USA

[investornewbie]

Hi, I have done a few real estate deals with a family member based in the USA. However, the paperwork and the additional taxes I'm paying here in Canada as well as the US. For our next up and coming project I was thinking of issuing him a hard money loan instead. I have some cash on hand but I would instead prefer using a loan or a line of credit from a bank here in Canada and charge him a premium on the loan. Would anyone know the tax consequences and ease of doing this instead?

 

[Thomas Beyer]

Plenty of US paperwork to file too. As such not worthwhile if under $200,000 or under $20,000 a year in interest. 35% tax rate in US unless lowered by The Donald in US. 45%+ in Canada on passive income. Plus two accountants, one here and one in US charging 2-5000 each.