Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 125003  
Subject: Re: Personal Loan Date: 5/17/2001 7:45 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
irasmilo: "Unless I read the original post wrong, this isn't a mortgage, it's a personal loan. The interest which the child pays to the parent in exchange for the parent lending the child the money is income to the parent. Unfortunately, the child cannot deduct the interest since, I assume, the loan is a personal loan and not associated with any business or investment purpose.

It's no different than when you "lend" money to a bank by opening a savings account. The interest they pay you for the privilege of using your money is taxable to you and is reported on a Form 1099."

IRA, I am not at all questioning that it is income to the parents; I was only confused as to who reported what to whom. And while I realzie that it is not a mortgage, a mortgage is basically a loan secured by real property. The mortgage lender lends me the money and I pay the mortgage holder interest. The interest is income to the mortgage lender, but I do not send an annual report to them.

Regards, JAFO

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.