2 ms·
If I give you a gift, it is income and you owe taxes on it. If I give you a loan, it is not income and no taxes are owed. But tax man will expect you to pay it
by dmitrygr 6y ago
If I give you a gift, it is income and you owe taxes on it. If I give you a loan, it is not income and no taxes are owed. But tax man will expect you to pay it off! If I forgive you a loan, that is also taxable income, in the amount that you have not yet paid off, so no loophole there.
- coolspot 6y agoIt may be different between an individual and a business, but for gift between individuals it is the donor who pays the tax: https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes https://www.irs.gov/businesses/small-businesses-self-employe...
- caturopath 6y agoThis is between an individual and a charity, though, right?
- caturopath 6y agoBut the Signal Foundation is a 501(c)(3), so their donors don't owe taxes on the donations, right?