Question

How to forgive personal loan as gift?

Forum|Forum|5 years ago
December 13, 2020
1 reply
0 views

I lend $15000 to my sister and wanted to forgive this loan as gift. What document is need to do this? Is there any tax implication on this?

TurboTax Home & Biz Windows

N

NCPERSON1

no tax implication and no form to fill out.... you can give up to $15,000 to anyone you want each year with no tax implications or forms to fill out. If you gave $15,000 to each of your thousand closest friends, there is still no tax implication and no forms to fill out.

X

xmasbaby0

Employee

GIFTS

Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return. Money that you gave as a gift to someone else is not deductible for your taxes.

Turbo Tax does not support the gift tax form 709, but here is a link:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-11-2-million-per-couple/#3226e75d4a4b

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**