I lend my friend about 130k for a house downpayment and she sent it back within a week. I did not charge any interest at the time, but do I need to file a disclaimer or a form following the IRS Applicable Federal Rates (AFR) during that month? If so, is the monthly interest rate applicable to a time period of just a few days? In addition, can I file it with TurboTax?
Thank you.
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No, you have nothing to report. If you had received interest on the loan, that would be reported on your return.
No, you have nothing to report. If you had received interest on the loan, that would be reported on your return.
Thank you for answering. By searching through the forum, I saw this post which is similar to my situation.
Just to double check, since the amount of money I lend exceeded 100k, do I need to report it?
Thank you again for your help.
No, the loan was not held long enough for the topic of the article to be an issue.
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