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manny1010
04-15-2016, 09:02 AM
Morning,

I have a small business. My grandparents have let me borrow $15,000 to purchase more equipment and remodel a few small things. I am wanting to know if this loan is considered income and will it be taxed when I fill my tax return.

Thank you for your help,
M

Toliver & Bancroft
04-16-2016, 03:36 PM
Hi M,

If it's a real loan that you actually pay back, it's NOT considered income. But if you are forgiven the loan, meaning you don't have to pay it back...it will be considered income to the IRS. Here's an article from Forbes that might explain it a little better. Hope this helps!
http://www.forbes.com/sites/robertwood/2013/12/03/sure-loans-arent-income-convincing-irs-it-was-a-loan-priceless/#12376f9817f2

Shannon Weiss
11-18-2018, 11:29 PM
That article from Forbes is really useful. Thanks for sharing !

leksi
11-19-2018, 01:49 AM
That is all right.

restaurantbusiness
12-19-2018, 09:06 PM
i agree your best option is to speak to an accountant

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joesimen
01-11-2019, 01:51 AM
yes sir i got one person in forum who helped me

speeduser
12-23-2020, 06:27 AM
Well, I am still an ardent believer that family members should be excluded in the business. It will only complicate things. - Steven C Wyer (http://stevewyer.biz/)