Loan to family member

[suresh_a1]

10 years ago, I loaned money ($50,000USD) to my brother-in-law when he was in India. After few years, things changes he decided to come to USA for work and he has been living here for couple of years. He is ready to pay my money back in chunks. We didn't sign any promise note or contract, also, it was interest free loan.

If I start accepting money from him,

1) Will there be any tax implications for me or for him?

2) Do we have to report anything when we file tax return?

Thanks for your advise.

[Coleen3]

No, there are no Federal tax implications to loaning money or paying back a loan to individuals.

[MyNameIsMarko]

I'm pretty sure the IRS won't agree with your answer.  According to IRS you must pay tax on any interest you collect.  If you don't collect interest, you must compute what the interest would have been and pay tax on it.  I hope I'm wrong but I think I'm right.