# Personal loan from big bank... any issues?



## LondonResident (Sep 27, 2013)

Hello. Are there any issues to be aware of from a US tax perspective if applying for a personal loan from a UK bank?

Thanks.


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## Moulard (Feb 3, 2017)

It will depend on what the loan is being used for.

Mortgages and loans used for investment purposes for example have a risk of creating taxable events on phantom currency gains that result in being forced to use USD as your functional currency.


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## LondonResident (Sep 27, 2013)

Thanks your help. In this case it’s for a car purchase.


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