Will I pay taxes if someone overseas is lending me money and they are transferring the funds to my account?
Saturday, May 30th, 2009 at
3:35 pm
fermin g asked:
I have a relative that is lending me money. He lives in another country. i want him to send the moey to my U.S. bank account. Do I have to pay taxes on this wore transfer?
I have a relative that is lending me money. He lives in another country. i want him to send the moey to my U.S. bank account. Do I have to pay taxes on this wore transfer?
Tagged with: Money • Pay Taxes • U S Bank
Filed under: Credit
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Not when the money is wired to you.
Keep your records showing that it is a loan and that you are paying them.
Keep in mind that this is US-source income to them, so you need to withhold 30% of the interest you are paying and send it the IRS for their taxes.
IRS publication 515.