a loan from relative

[tanbaby1218]

What is the name of your state? ga. i tried to post this about 2 weeks ago and apparently did it wrong. i am planning on borrowing some money from my mother and have heard that there is some type of limit before it is taxed or something to that effect. if this is true, what is that limit and what is the procedure for handling such a situation?What is the name of your state?

 

[LdiJ]

What is the name of your state? ga. i tried to post this about 2 weeks ago and apparently did it wrong. i am planning on borrowing some money from my mother and have heard that there is some type of limit before it is taxed or something to that effect. if this is true, what is that limit and what is the procedure for handling such a situation?What is the name of your state?

There are no limits or taxable transactions involved in borrowing money from family.

There can be with gifts, but not with borrowing.

 

[tanbaby1218]

re:loan from a relative

to LdiJ--so would i need to draw up a contract just as if i had borrowed money from a bank ? i want to make sure i have everything legal before continuing on with this. thanks.

 

[LdiJ]

to LdiJ--so would i need to draw up a contract just as if i had borrowed money from a bank ? i want to make sure i have everything legal before continuing on with this. thanks.

How much money are we talking about?

 

[tanbaby1218]

re:loan from a relative

to LdiJ--thanks for responding quickly, im looking to borrow about 30,000.

 

[LdiJ]

to LdiJ--thanks for responding quickly, im looking to borrow about 30,000.

In that case yes, I would recommend drawing up a loan contract. Not only to avoid any tax implications, but to also protect the relationship between you and your parent by making it a true business transaction.