My friend loaned me a total of about $13k over the past 2 years. We have nothing in writing; just a verbal contract that I would pay him back when I was able to. Well I am going to be able to very soon due to the sale of some property. Can I just write him a check for the amount I owe him and forget about it? Or is there some sort of paperwork I must complete for taxes?
Thank you for your help.
2007-12-21 08:42:59 · 2 answers · asked by Criss_Mousse 3 in Business & Finance ➔ Taxes ➔ United States
Thank you for your answers so far!
He is not charging me any interest on this loan.
2007-12-21 12:56:19 · update #1
Repaying a loan has no tax consequences. But it would be a good idea to have a written agreement in the rare chance that any questions are asked.
2007-12-21 09:03:16 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
There is an axiom that a written contract isn't worth the paper it is printed on. For your friend's protection, you should have had something in writing. If you pay any interest it will be taxable for him and maybe maybe not deductible by you.
2007-12-21 18:06:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋