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Hi and welcome to Just Answer!
What is the source of these money? Is that a gift? Inheritance? Other?
The fact of transferring the money - by itself - is not taxable.However based on the source of funds, a residency status, the amount and other circumstances - there might be some additional reporting requirements.
The loan - as long as it is assumed to be paid back - is not taxable income - no need to be reported.The bank might ask to disclosure the source of the money - so the formal loan agreement might be helpful if requested. I might suggest discussing with your banker before initiating the transfer.Nothing will be reported to the IRS and there will not be any tax liability for the loan.
You are very welcome.Is there any interest charged on that loan?
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Please note that this interest (if the loan is used for mortgage purposes is tax deductible.
If this does not answer your question please let me know. Also let me know if you have additional questions.
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Unfortunately it is very unlikely that your client will be able to deduct the interest on the loan.
I assume that you did not pass incorrect advice to your client.
I asked about the interest because if the interest is not charged - the forgone interest would be deemed a gift.
As long as the interest is charged - that is not an issue.
The loan - as long as it is assumed to be paid back - is not taxable income - no need to be reported.
Nothing will be reported to the IRS and there will not be any tax liability for the loan.
Let me know if you need any help.