Hello, i have a tax question and wonder if someone could help me out!
i loaned a friend of mine in 2020 in amount of $30K and she is repaying me monthly in amount of $2200 in 2021. i did not report these monthly payments to my tax return because i thought these are not income. i did not ask her to pay interests and these monthly payments are paid toward to the loan principles.
My question is should i report these monthly deposit as income? is my understanding correct?
thank you!
