My parents gave me a large sum of money for a house (it was loan). I didn't use it and i transfer back the money back to them.
Do I need to report this?
2007-02-11 18:44:47 · 7 answers · asked by kmr 1 in Business & Finance ➔ Taxes ➔ United States
it was their money and it was sitting in checking account and not earning any interest.
2007-02-11 19:05:46 · update #1
Careful with your terms. They either gave it to you, or loaned it to you. As long as you can prove you're paying it back (or have paid it back,) it's a loan, not income & not subject to income tax. If they gave it to you, it's a gift & then subject to potentially two taxes.
2007-02-11 18:49:14 · answer #1 · answered by D 3 · 1⤊ 2⤋
It depends on the type of loan. A business loan
Yes, A gift loan or education loan no! If your Parents didn't report loaning any money then why open it up to the tax people at all? If your parents did report it.. then find out what kind a loan it was if U don't know.
2007-02-11 18:55:07 · answer #2 · answered by Anonymous · 1⤊ 1⤋
No, you don't need to report it or pay tax on it. If you had used it and paid them interest, then they would have reported and paid tax on the interest that you paid them.
2007-02-12 03:46:51 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
No. Loans are not taxable. Any interest paid would be taxable income to the recipient, however.
2007-02-11 18:54:41 · answer #4 · answered by Anonymous · 1⤊ 1⤋
No, there are no tax consequences for that transaction.
2007-02-11 19:01:27 · answer #5 · answered by Bostonian In MO 7 · 2⤊ 1⤋
Yep. The government will hang you by your penis if you try and hide it. They ARE watching you.
2007-02-11 18:47:03 · answer #6 · answered by Helpful Dan 2 · 0⤊ 6⤋
No.
2007-02-11 18:48:11 · answer #7 · answered by shendley04 3 · 0⤊ 0⤋