Can a Lender Charge the Borrower for the Opportunity Costs of a Loan?
QUESTION
Washington, D.C.
Rabbi Linzer, one person wants to lend a large sum of money (short term loan) to a someone. The lender will withdraw money from an investment account to do this. In order to liquidate the investments, the lender will have a tax penalty and also have opportunity costs because he wont be making money over the course of the short term loan. I assume it is ribit to charge for the opportunity costs. Can the borrower pay the capital gains tax penalties that will result or is this considered ribit as well? Thank you.
