If i borrow $20k and pay it back in same year, how does it affect income taxes?

taz5785 · Mar 24, 2005

undefinedWhat is the name of your state? NY

I have a friend willing to loan me $20k to invest in some mutual funds, i will agree to pay him back by the end of the year with a little inerest. I am wondering if that $20k affects my income taxes at all or if just the gains on the investment are counted?

thanks
Chris

LdiJ · Mar 24, 2005

taz5785 said:
undefinedWhat is the name of your state? NY

I have a friend willing to loan me $20k to invest in some mutual funds, i will agree to pay him back by the end of the year with a little inerest. I am wondering if that $20k affects my income taxes at all or if just the gains on the investment are counted?

thanks
Chris

Loans are not income for tax purposes (as long as you actually pay back the loan). Only the gain would be taxable.

If i borrow $20k and pay it back in same year, how does it affect income taxes?

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taz5785

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