I have been off and on employed (and a student) within 2006 and hit some rough times where my boyfriend would loan signifigant amounts of money to live off of or use for doctors visits. So, I 'm worried if the IRS sees this incoming money occasionally going into my bank account, will I need to account for it? Is there a section on the tax form for this?
2007-01-24 21:41:20 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Actually the limit is $12,000 now. Yes, you do need to account for it but only if you are ever audited. Hopefully your boyfriend has corresponding withdrawals from his bank account. That would be useful.
As he is loaning you the money, I'm guessing you are not living together. Otherwise, I doubt this question would arise. That means that he would not be able to take you as a dependent. However, if my assumption is wrong, take a look at Publication 501 at www.irs.gov. There may be some tax benefits in it for him. The big catch is that any such relationship must not be in violation of local law. Many states (including mine) have laws against people playing house before marriage.
i realize I have answered much more than your original question, but I hope you find it helpful.
2007-01-24 22:45:44 · answer #1 · answered by skip 6 · 1⤊ 0⤋
Bank account transactions below $10,000 are not reported to the IRS.
Also someone can give you a gift of $10,000 without any tax consequences.
2007-01-25 05:56:17 · answer #2 · answered by edoubleyou 4 · 1⤊ 0⤋
No problem. Gifts up to $10,000 per year per person are not taxable.
2007-01-25 06:27:25 · answer #3 · answered by crazydave 7 · 1⤊ 0⤋