I loaned a friend $6,000 in cash and now he wants to pay me back with a check. I am afraid that if I deposit it I will be taxed on that money, is that true? The money I gave him in cash was cash gifts to me, so I really don't want to deposit a check and pay tax on that money. Please tell me the best way to do this, so that I am not being taxed on my own money.
The loan repayment is not a taxable event because it's not income. It won't matter whether it's repaid in cash or by check.
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