Legal Question in Wills and Trusts in Nevada
Loan and Tax Question
In 2008 I received a loan from a close friend with the agreement that when I sold my house the loan would be paid back. The house has not yet sold and my friend passed away in May 2009. Do I claim this money as income on my 2009 tax return?
Asked on 7/10/09, 1:55 am
2 Answers from Attorneys
Jonathan Reed
Reed & Mansfield
Re: Loan and Tax Question
You really owe the money to your friend's estate. If you choose to take the position that his death reduced your indebtedness to zero, then, yes, you would have income upon his death equal to the loan.
Answered on 7/10/09, 10:51 am
Jonathan Reed
Reed & Mansfield
Re: Loan and Tax Question
You really owe the money to your friend's estate. If you choose to take the position that his death reduced your indebtedness to zero, then, yes, you would have income upon his death equal to the loan.
Answered on 7/10/09, 10:51 am
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