What is the name of your state? Florida
Since 2015, until 2019, I have been giving loans separately to my wife and our adult son. I have been filing joint tax returns with my wife.
In 2015: I gave $20,000 loan to my wife, and $14,000 loan to son.
In each of the years 2016, 2017, 2018, 2019, I gave the same amount of loan to my wife and son (i.e., $20,000 loan to wife, and $14,000 loan to son).
Now they want to pay back the loan to me. I read somewhere that, if we both agree, I need not collect and need not report any interest on the loan I gave to my wife. That is, if we both agree, my wife can simply pay back the principal (which is $100,000 total) and we need not report this matter anywhere in the tax returns. Is this correct?
For the loans I gave to my son, although I do not want any interest, I heard that there is some minimum interest I must collect to prove that it is a loan but not a gift? Could someone tell me the minimum interest rates for the years 2015 to 2020 my son must pay? I never reported this loan to IRS or in my tax returns. If my son pays back the loan now (along with that required minimum interest), and I report that interest in my 2020 tax returns, is it enough to prove (for IRS tax purposes and any other legal purposes) that it was a loan (not a gift) paid back?
In 2015, 2016, 2017, 2018 and 2019, my wife gave some loan and some gift to our son, from her personal account. If she wishes to forgive those loans (never collects that loan back) , will it be counted as if I am also involved in that forgiving (I cannot forgive any loan due to some legal issues I am facing from someone else).
Since 2015, until 2019, I have been giving loans separately to my wife and our adult son. I have been filing joint tax returns with my wife.
In 2015: I gave $20,000 loan to my wife, and $14,000 loan to son.
In each of the years 2016, 2017, 2018, 2019, I gave the same amount of loan to my wife and son (i.e., $20,000 loan to wife, and $14,000 loan to son).
Now they want to pay back the loan to me. I read somewhere that, if we both agree, I need not collect and need not report any interest on the loan I gave to my wife. That is, if we both agree, my wife can simply pay back the principal (which is $100,000 total) and we need not report this matter anywhere in the tax returns. Is this correct?
For the loans I gave to my son, although I do not want any interest, I heard that there is some minimum interest I must collect to prove that it is a loan but not a gift? Could someone tell me the minimum interest rates for the years 2015 to 2020 my son must pay? I never reported this loan to IRS or in my tax returns. If my son pays back the loan now (along with that required minimum interest), and I report that interest in my 2020 tax returns, is it enough to prove (for IRS tax purposes and any other legal purposes) that it was a loan (not a gift) paid back?
In 2015, 2016, 2017, 2018 and 2019, my wife gave some loan and some gift to our son, from her personal account. If she wishes to forgive those loans (never collects that loan back) , will it be counted as if I am also involved in that forgiving (I cannot forgive any loan due to some legal issues I am facing from someone else).