Is there a time limit for a personal loan to be returned before the loaner gets taxed?
Posted on Jan 27, 2012 with Comments 2
asked:
Let’s say you loan a friend $100,000 post-tax dollars from your personal bank account, is there a time limit the federal/state (CA) will recognize a deposit of $100,000 dollars is not extra income earned but rather an in-and-out (withdraw-and-deposit) transaction?
Marshall Mathers
Let’s say you loan a friend $100,000 post-tax dollars from your personal bank account, is there a time limit the federal/state (CA) will recognize a deposit of $100,000 dollars is not extra income earned but rather an in-and-out (withdraw-and-deposit) transaction?
Marshall Mathers
Filed Under: Personal Finance
I can’t answer you better than this site can
so I hope you find what you seek there dude
the time is irrelevant. you pay tax on interest received; if the loan has been cancelled, there is no tax.