I’m looking to open a shop and my parents offered to lend me some money to help out. They are taking out a home equity loan to lend me about $35,000 to $55,000. I agreed to pay them back. Because they are taking out a loan do they have to pay any taxes? Do I have to pay taxes on this money?
I don’t have any assets so I wouldn’t be able to get a loan for the amounts of money I posted.
My Parents Are Taking Out A Home Equity Loan To Lend Me Money To Start A Business, Does Anyone Get Taxed?
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3 Responses to “My Parents Are Taking Out A Home Equity Loan To Lend Me Money To Start A Business, Does Anyone Get Taxed?”
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not unless you are going to pay them any interest on the loan!!!! sure hope you make it — hate to see your folks lose there home!!!!
$10,000 a year is a gift no tax.
No one gets taxed for making of receiving a loan. The IRS will consider a portion of you payments to be interest on the loan. This is taxable to your parents and MAY be deductible as a business expense.