I have a friend in Australia who is willing to personally loan me $14,000 USD in order to pay off a mortgage. We are going to have the money transferred directly into my bank account. Are there any taxes that we will have to pay, and do I have to declare this in any way? If he just gifted me the money would there be any difference?


Thanks!

There is NO transfer tax due, and, because it is a LOAN, there is no income tax due at either the state or federal level.

Form 3520 MAY have to be filed to explain the source of the money, but that is for information purposes only.