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  1. #1
    Join Date
    Mar 2011
    Posts
    1

    Default Tax Liability for Lending Money to Family Member

    I want to lend let's say $200,000 to my Uncle to get him purchase this business he wants. If I do that and my Uncle pays me back $4000 each month for 50 months, completely pay off $200,000 he borrowed, is there any tax liability issues arise for me by getting this $4000 every month from him? As it's family member, I am not charging any interest at all - and yes that's fact that that's how it's going to be indeed ($0 interest) if there are any interest issues.
    Please advice if we can do something like described above?
    Thank you

  2. #2
    Join Date
    Sep 2005
    Location
    California
    Posts
    65,659

    Default Re: Tax Liability for Lending Money to Family Member

    Not from what you've told us so far. It's not income.

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