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Author: TMFTaxes 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 120820  
Subject: Re: Gift Tax and Personal Loan Date: 12/9/1998 8:26 AM
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[[Thanks so much for the advice. That queasy feeling in my gut has more to do with IRS fear than
the lousy Tex-Mex I had for lunch.

For the most part, your answers made me more comfortable with my plans: declare the interest on
both the investment and the loan (pretty much a no brainer).]]

Right...as long as you declare the interest, you shouldn't have too much trouble with the IRS. You might still have a "gift" issue with your friend, but that is something that you can most likely work around since the amount is under the $10k requirement.

If you decided to simply "hide" the funds, and ignore the interest income, you would certainly have some problems with Uncle Sammy, and would likely have some explaining to do.

[[ As for the attorney, the parties aren't married, so I don't know how that plays out. On your advice,
I am taking this up with my lawyer. ]]

I sure would. Your potential problems would appear to be more civil than with the IRS. So make sure that you are on solid ground with what you are trying to do.

TMF Taxes
Roy
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