Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   Where do I put this amount on tax form? (https://www.askmehelpdesk.com/showthread.php?t=66796)

  • Feb 26, 2007, 08:32 PM
    SASSYJO10
    Where do I put this amount on tax form?
    My son gave his dad money to buy a piece of heavy equipment for his business.His dad promised a percentage of the profits made using this piece of machinery. His Dad gave him 15,000.00 for his profit and some money back on the equipment as he is paying him back so much a year on it and then the profit he makes will end when dad has paid him back. How does he file this money on his taxes as he has no paperwork other then receipts for it. Thanks
  • Feb 27, 2007, 11:56 AM
    AtlantaTaxExpert
    Your son LOANED the money to his dad, with re-payment terms based on future profits.

    The re-payment of the money in excess of the loan amount is consider interest and should be deducted as such on Schedule C. The dad should report the interest paid on Form 1099-INT.

    Your son should report the excess money as interest earned on a loan. The interest is reported as income on Schedule B.

    If you need my professional tax help, contact me at dpmtax.com.

  • All times are GMT -7. The time now is 12:17 AM.