Good morning all,  I am kinda stressed out today.  I borrowed some money about two years ago from my dad.  I used it to pay off some debt I had.   Now he going to his tax guy and including the amount I borrowed  :o.  That means I may have to claim that on my  taxes  :'(.  Due to lack of job I have been unable to make any payments, so if the IRS wants that money, well I could be in a heap of trouble.  I am kinda scared.  I have never been in this position before.  Been doin some real live praying about this.  Thank you for listening, I am about to start crying all over again.  

Debr

I'm so sorry you are stressing over this.

I'm not a tax accountant, but just how is your dad reporting the money?  If he "gifted" it to you and it is under the annual limits for gifts, you do not have to claim it as income.  If it was a loan, you still would not have to report it as income.  If you were repaying the money, with interest, your father would need to report the interest as income.  

Thank you BB.  There is so much stress in the world.  I just wish this was less thing to worry about  :(.

Debr

Hi Debr

If it's any further help do you know if there are any accountants nearby who offer half an hour or so free initial consultations ?

If so why not consider booking a quick appointment with them and explain things ? Ideally if you can ("well, it is kinda personal" !) a woman who might just be that much more sympathetic !  ;) They're all officially bound by the laws of their profession to keep such matters private, so it might at least be a start and take some of the worries off your mind ? It sounds as though it’s the caring, friendly professional shoulder as much as anything you need right now.

If nothing else hope this is of some encouragement ? Keep in touch....  :)

Cadie

Hi Cadie, Thanks, I don't if there is anything like that around here, but it is worth checking into.  It will sure beat "the tears"and the wear n tear on my emotions.  
Debr

I think the IRS offers free tax help, don't they?  It'd be worth a call to find out.  In any case, keep praying.  *hugs*

bikerbraid wrote on Jan 31^st, 2007 at 2:40pm:

I'm so sorry you are stressing over this. If he "gifted" it to you and it is under the annual limits for gifts, you do not have to claim it as income.

I would bet this is the case. If he thinks you may not be able to repay this loan, he probably wants to take it off his income as a gift.

Hey, no need to stress. I've been bailed out by my parents before when my wife had cancer and also when I had to replace my truck.