Finance Questions? Ask a Financial Expert for Answers ASAP
Thank you for your question. My name is XXXXX XXXXX I will be happy to help you
Do you plan on having your daughter pay you back?
If so, you can treat this as a loan and no reporting is necessary
IF she's going to pay you back, then it's a loan.
No need to treat this as a gift
Do we need any documents or is the agreement fine.
For that amount of money, I would type up a simple loan agreement, which just states she's to pay you back. You don't have to have a payment schedule
Just so you have it.
And...what happens if she loses the case and can't pay back?
When you forgive the debt, then it's a gift. All you do is file the gift tax return (and who knows, by then it might be 15,000 per parent)
But, no gift tax is due unless you have given away more than 5.2 million during your life.
Thank you very much.
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That's it. Thank you.
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