http://creditopics.com/creditbuzz/personal-finance/what-are-the-tax-liabilities-for-personal-loans-and-gifting-of-money/ Wed, 07 Dec 2011 22:04:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://creditopics.com/creditbuzz/personal-finance/what-are-the-tax-liabilities-for-personal-loans-and-gifting-of-money/comment-page-1/#comment-9416 STEVEN F Mon, 27 Apr 2009 20:21:51 +0000 http://creditopics.com/creditbuzz/personal-finance/what-are-the-tax-liabilities-for-personal-loans-and-gifting-of-money/#comment-9416 You don't mention what country you are in. Under US tax law. The borrower has NO tax related to a loan. The lender would include the interest portion of payments in their total income for tax purposes, and pay the same rate as normal income. In the case of a gift, the receiver has no tax. The giver can give up to $12,000 per year to each recipient with not tax results. Above that amount, a gift tax return must be filed, but up to $1 million can be given in a lifetime before taxes are actually paid.
You don’t mention what country you are in. Under US tax law. The borrower has NO tax related to a loan. The lender would include the interest portion of payments in their total income for tax purposes, and pay the same rate as normal income. In the case of a gift, the receiver has no tax. The giver can give up to $12,000 per year to each recipient with not tax results. Above that amount, a gift tax return must be filed, but up to $1 million can be given in a lifetime before taxes are actually paid.

]]> http://creditopics.com/creditbuzz/personal-finance/what-are-the-tax-liabilities-for-personal-loans-and-gifting-of-money/comment-page-1/#comment-9415 s g Sun, 26 Apr 2009 16:06:47 +0000 http://creditopics.com/creditbuzz/personal-finance/what-are-the-tax-liabilities-for-personal-loans-and-gifting-of-money/#comment-9415 There are no tax liabilities on loans, but rather what you buy with the loan.
There are no tax liabilities on loans, but rather what you buy with the loan.

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