2006-10-14 09:44:28 · 7 answers · asked by Joe G 1 in Business & Finance ➔ Taxes ➔ United States
Thank you all... the 10k loaned was in a check form.
2006-10-14 10:01:46 · update #1
You do not need to report to the IRS that you loaned anyone any money. You do need to report on line 8 of 1040 any interest she pays you regardless how much it is. If she just pays you back the $10,000 with no interest, then you need not report anything.
2006-10-14 12:32:52 · answer #1 · answered by TaxMan 5 · 1⤊ 0⤋
You don't report loans as there is no provision to do so. If you loaned her money and she pays you interest the interest will be taxable to you; put it on your Sch B in your tax return. The 10k of the loan is just a return of your own money when you get it back. Make sure your sister does not report it as income as a loan is NOT INCOME, it is a loan for whatever.
2006-10-17 17:22:55 · answer #2 · answered by acmeraven 7 · 0⤊ 0⤋
You don't report money you loan to someone, you only report the interest you earn on the loan. No interest, no reporting required.
If however you give her the money it will count against your gift allowance and at some point when you reach a certain amount of gifts you have to pay tax on that, about 50% right now.
2006-10-15 18:09:40 · answer #3 · answered by rmagedon 6 · 0⤊ 0⤋
There is no tax reporting requirements by anyone for the principal amount of a loan. Banks are only required to report cash transactions so use a check. The only tax consequences would be any interest paid or received.
2006-10-14 16:55:00 · answer #4 · answered by Barkley Hound 7 · 1⤊ 0⤋
You don't report anything. It doesn't matter to you that banks report transactions over $10k. That's more for money laundering or terrorist/criminal activity. You would report the interest she paid you on schedule B if it's over a certain amount that I can't remember right now and am not going to look for either.
2006-10-14 17:05:38 · answer #5 · answered by porkchop 5 · 1⤊ 0⤋
First of all the Bank is required to notifiy the IRS when any transactions meeting or exceeding $10,000.00 occur on any specific bank account. So I can tell you if you withdrew or transfered the money using a bank than it would be very wise to report this information as the IRS is already fully aware of the transaction because of the Bank Secrecy Act.
See below source.
2006-10-14 16:47:40 · answer #6 · answered by virtualrealitys 2 · 0⤊ 2⤋
if you don't you will go to jail.
2006-10-14 16:45:35 · answer #7 · answered by Zakary Dejesus 1 · 0⤊ 3⤋