Planworth does not yet have a standalone spousal-loan entry. Record the loan with three Evaluation entries, then unwind it with four toggles when it is repaid.
The example below is a $20,000 loan at a 5% prescribed rate. Use the client's own loan amount, current balance, and the prescribed rate in effect when the loan was made.
Record the loan
1. The borrower's non-registered account
Under Savings → Non-Registered, add an account owned by the spouse who borrowed the money. Enter today's balance and adjusted cost base. The balance can differ from the original loan because of growth or withdrawals since.
2. The borrower's Misc. Debt
In Preliminary, under Debt, check Other Debt.
Open Unique Assets, then Misc. Debt, and select Add Misc. Debt under the borrowing spouse.
Set Type to Other Loan Payable and Lender to Other.
Enter the original loan amount as Loan Balance and the prescribed rate as Interest Rate.
Check Interest Tax Deductible and Interest-only Payments.
Select Save.
This records the borrower paying interest each year. The interest is not yet income to the lending spouse. The next entry does that.
3. The lender's Misc. Asset
In Preliminary, under Unique Assets, check Misc. Assets.
Open Unique Assets, then Misc. Assets, and select Add Misc. Asset under the lending spouse.
Set Type to Other.
Enter the loan amount as Fair Market Value and as Adj. Cost Base.
Set Rate of Growth to 0%.
Enter the annual interest as Annual Income. For $20,000 at 5%, that is $1,000.
Set Income Growth Rate to 0%.
Select Save.
The borrowing spouse now has a tax-deductible interest expense, and the lending spouse has taxable interest income.
Repay the loan
In Financial Insights, add four toggles for the repayment year, each for the loan amount.
Savings/Investments → Manual Non-Reg Withdrawal from the borrower's non-registered account.
Income/Expenses → Other Debt Additional Payment on the Misc. Debt.
Sale/Purchase of Assets → Sell Personal Misc. Asset, selecting the Misc. Asset.
Savings/Investments → Manual Non-Reg Contribution to the lender's non-registered account.
The four toggle forms, in order:
Together, the four toggles clear the Misc. Debt and Misc. Asset and move the repaid amount from the borrower's account back to the lender's account.
The prescribed rate, attribution rules, and whether a spousal loan fits the client stay with the advisor.