Credit Card Lending to Friends: Potential Tax Risks

Imagine you let a friend use your credit card to buy something, and they pay you back.

Doing this occasionally is fine.

But if you do it often, the government might think you're making money and not reporting it.

If you regularly let friends use your card for big purchases and get paid back, the tax department may investigate.

Banks have to tell them if you spend over a certain amount.

To avoid problems, always use bank transfers and keep records.

A little help is okay, but turning your credit card into a mini-bank is risky.