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C
cy49
February 8, 2021
Question

How should I show that I took a $110,000.00 loan from a friend?

  • February 8, 2021
  • 1 reply
  • 0 views
It was for a garage construction project that has been put on hold. I do not own the property the construction was to occur on, nor does the lender. There was no collateral, the project is on hold and I began making payments in August.

1 reply

J
JeffreyR77
February 8, 2021

If this is a business project, you can deduct any interest related to the payments you are making.  

 

You should issue a Form 1099-INT to your friend for any interest payments greater than $600 you made to him during 2020.

 

The loan itself and any principal payments are not taxable.

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