If you have been given a family loan how do you itemize the payments for that loan on your taxes?

lathturg — Mon, 23 Feb 2026 12:05:40 GMT

Re: If you have been given a family loan how do you itemize the payments for that loan on your taxes?

VolvoGirl — Mon, 20 Feb 2023 01:34:53 GMT

What was the loan for? It probably doesn't go on your tax return. You can't deduct the interest unless it was for a house or used in your business.

Re: If you have been given a family loan how do you itemize the payments for that loan on your ta...

DavidD66 — Mon, 20 Feb 2023 01:56:00 GMT

You do not need to claim anything on your tax returns; however, the family member that gave you the loan will need to report interest received on their tax return. In a family loan, when there is no interest rate or a rate below the IRS-determined minimum rate, the interest that isn’t charged is assumed to be income to the lender from the borrower. In other words, there is imputed interest income or phantom income. If this is the case, the lender should report interest income at the Applicable Federal Rate as income, even though if cash was received.

The lender should charge, and you should pay an interest rate equal to the “applicable federal rate” (AFR). As long as you do that, the IRS will be satisfied and you won't have to worry about any tricky tax rules biting you. As the lender, your mother will report as taxable income the interest she receives.

You should send the lender a Form 1099-INT showing he amount of interest paid and/or accrued.

You can get AFR rates by going to the following IRS webpage: Applicable Federal Rates (AFRs).

topic If you have been given a family loan how do you itemize the payments for that loan on your taxes? in After you file

If you have been given a family loan how do you itemize the payments for that loan on your taxes?

Re: If you have been given a family loan how do you itemize the payments for that loan on your taxes?

Re: If you have been given a family loan how do you itemize the payments for that loan on your ta...