My friend took out a $20,000 personal loan for me. How can he transfer it to my account without worrying about the IRS?
Here are some suggestions you should consider:
• Unless you want the $20,000 to appear as income, you should have a signed loan note in which you promise to repay your friend.
Have your friend write you a check for the amount he is lending you, then deposit the check in your account.
The loan note should require that you pay interest for the loan. If you aren't charged interest, the IRS might decide that you got income equal to the amount of interest you should be paying.
Pay your friend regularly until you pay off the loan note you signed, with interest.
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Here are some suggestions you should consider: