yshpakov
New Member

Is it my taxable income if my debtor repays the debt to me?

First I paid for his utilities with my credit card. Then he transferred money (repaid his debt) from his checking acc to my checking acc. The extra problem is that there is no name of my friend in my credit card statement (in the purchase transaction details) but there is the name of my friend in my checking account statement in details of this transaction.

So how could I prove to IRS the link between these 2 transactions? And should I prove? Maybe IRS must trust me unless the prove I lie? So who should prove: me or IRS?

P.S.

I'm a resident of VA. So the same question is for the state level please