| It is imperative that one ask for IRS tax advice | | | | make sure that each piece of advice has been |
| from a trained professional as there are times | | | | looked into and that the information learned from |
| when you really need help to bring down those | | | | the IRS tax advice has been thoroughly |
| tax bills that have been charged to you at big | | | | understood by all those concerned. If the |
| amounts. When you lend money to members of | | | | conditions and requirements stated by the advice |
| your family you have to be careful. Documents | | | | have not been followed through, you might need |
| must be complete so that the IRS would know | | | | to face big difficulties when the time comes to file |
| that the money you lent wasn't intended for a | | | | your taxes. |
| gift. As such, all needed information required need | | | | Also in addition to those stated above, another |
| to be presented like the interest rate applied to | | | | piece of information that would be one to take |
| the loan and the schedule of payment that you | | | | into consideration is that family relations have |
| and your family member have agreed on. IRS tax | | | | been detroyed more than once before due to |
| advice would tell you that a note from the one | | | | loans that were not settled or clearly planned out |
| who borrowed the money must be submitted | | | | and scheduled. Complex rules of the IRS and all |
| too. It should contain pertinent income documents | | | | other tax exceptions add to the confusion that |
| including his expenditures to prove that he has the | | | | taxpayers have to face. Some good advice is the |
| capacity to pay the money he owes you. This | | | | best solution to be able to relieve one from these |
| advice would also inform you that without these | | | | stressful and time consuming issues. When you |
| requirements, the IRS would think that the | | | | have an experienced Certified Public Accountant |
| money that was lent was given as a gift | | | | or a legally recognized tax professional with a |
| therefore making all gift tax rules applicable | | | | good background to handle your tax affairs, |
| wherein you, as the lender usually is reponsible for | | | | creating structures for family loans will be |
| paying the taxes. | | | | organized and well thought of therefore saving |
| So now knowing the conditions stated above, | | | | you the hassle you would have got when you |
| before closing all lending transactions, you must | | | | didn't have one. |