Loans between family members for tax purposes
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rockey
Apprentice
Joined: 12 Oct 2004
Posts: 21
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 Posted: 09/12/07 - 04:48 Post subject: |
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| I need some info related to loans between family members for tax purposes. The thing is that I need help from family bank but would like to get familiar with some IRS rules on this for I am willing to avoid some tax problems afterwards. The thing is that I am planning on buying a house for my family but I am out of money and am about to borrow it from my mom and dad so I just need some tips to help me on avoiding possible criminal charges. |
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maryellen
Apprentice
Joined: 14 Jan 2004
Posts: 18
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| Posted: 09/30/07 - 22:37 Post subject: |
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| First you will have to document the loan prcising of what sort the loan is-is it with or without interest and you dont need a lawyer service for this you may actually obtaining yourself by creating these documents using the Quicken Family Lawyer software for example. Also if you are buying a house you will need to secure the note with the residence and I would suggest you take a lawyer for this and doing so is very important in order to perform certain tax deductions such as home mortgage interest. And you better take this seriously for I am sure that anyone who missed reporting the family loan may face serious criminal charges. |
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