Question by  Belle (75)

Is there any tax implication on lending money to a family member?

How should it be represented on tax form?


Answer by  Att4372 (1704)

You need to have a written loan agreement, with stated market rate interest and repayment terms. The loan maker reports interest as taxable income.


Answer by  Chaneygirl (1755)

There are no implications to lending. If you are receiving interest, it should be recorded as interest income on schedule B. If the money isn't paid back, in order to write it off as a bad debt, you would need to take the person to court and go through legal means to obtain or write off.


Answer by  DevoutCatalyst (441)

If it's less than $10,000 you don't need to declare it unless you have a contractual agreement in place in which case the interest you would earn from the lend would be taxable.


Answer by  technogeek (6640)

If it is less than $10,000, then you do not have to declare the loan unless you have a written agreement for repayment.


Answer by  cgroverla (516)

A loan to a relative is not recorded on anyone's tax return. If the amount of the loan is more than $10,000, interest income is reported by the lender.


Answer by  pepper (1)

If I want to pay off my aunts home loan as a gift ? taxes do I pay

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