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Get your taxes done using TurboTax
There should be a formal (written) document. It should include the loan amount, interest rate, repayment schedule (could be on demand), and any penalties for missed payments. Having a formal agreement would demonstrate to the IRS that this is a legitimate loan and not a gift.
as for tax forms to be issued for the interest paid /received - none.
‎January 20, 2025
9:27 PM