2007-06-26 15:05:27 · 5 answers · asked by lullabyelady 2 in Science & Mathematics ➔ Other - Science
Not as you state it.
Not in the USA at least.
Income tax is on income. The money repaid (no interest) is actually just a return on the money lender's money. It isn't income. It is a return of capital.
If this is a trick question and there is a fixed fee, but no interest "rate," there is a possibility that the fee is income and thus taxable.
I do not give tax advice, but I would not even report this.
2007-06-26 15:18:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Only if you had declared a deduction when the money was loaned. If you did, you avoided tax on the original loan so now the repaid money is income.
If there was no deduction, there is now no income so there will be no tax.
2007-06-26 22:29:13 · answer #2 · answered by mstr_spkr 2 · 1⤊ 0⤋
Only your taxing authority can answer this. In the US, it is not considered income, so there would be no income tax ramifications.
2007-06-26 23:41:15 · answer #3 · answered by Frank N 7 · 0⤊ 0⤋
I don't think so. Any interest earned would be considered taxable by the IRS.
2007-06-26 22:10:13 · answer #4 · answered by dwp_hornblower 4 · 0⤊ 0⤋
No. There was no income.
2007-06-26 22:10:47 · answer #5 · answered by yupchagee 7 · 0⤊ 0⤋