I sent $25,000 to my friend in India. Now he wants to pay me back. How can he wire that money to my bank account here in the USA? If he can do this, is it reported to IRS? Do I have to pay taxes here in USA for that money received?
Untitled
The IRS does not normally consider the repayment of loan principal to be income. Any interest received as part of the payment would, however, be viewed as income and possibly subject to taxation.
Your friend's bank in India can assist him in completing a wire transfer to your bank account if you provide him with your bank's wire transfer routing information. Ask your bank how the wire should be routed in order to ensure it will get to your account.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
The IRS does not normally consider the repayment of loan principal to be income. Any interest received as part of the payment would, however, be viewed as income and possibly subject to taxation.