my brother let me borrow $400 for college.?

Question

on his taxes he claimed that, and they are giving him an extra $370 on his return. he still wants me to pay the $400 back to him. does anyone think this isn't right? i need an outside opinoin. don't get me wrong i appriciate what he did and want to give him interst on the money he lend to me.

Answer 1

It is black and white. You borrowed the money. Pay him back. This is the same scenario as if you decided not to pay any other debt because whoever made the loan earned the interest

Also, it doesn't make sense that he deducted this from his taxes. That would definitely be a questionable write-off and he may be dealing with the IRS later. That will be his problem.

Answer 2

This is a hard one! I understand where you are coming from though. I guess, if he still wants you to pay him back just do it so it doesn't hurt your credibility with him. In my opinion if I lend someone that money and got the majority of it back, out of the kindness of my heart I would probably not ask for the other $370.00, but everyone thinks differently. Just pay him so it doesn't affect your relationship, after all he still lend the money to you out of the kindness of his heart. Not a lot of people would do that!

Answer 3

If he deducted it - and I'll be danged if I know how he justifies that - he'll have to declare it as income when you pay him back.

Personally I'd be more concerned about keeping a promise to a family member and not give a $#!& what the IRS says about it.

Answer 4

Keep peace in the family. You benefited from the money, it is best to pay him back.

Answer 5

I don't think that is right at all. If anything all you should have to pay him is the difference. I can't understand however why he was able to claim your loan on his taxes.