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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I am CanadXXXXX XXXXXving in B.C., my friend is a canadXXXXX XXXXXving

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I am CanadXXXXX XXXXXving in B.C., my friend is a canadXXXXX XXXXXving and working in Texas as the CEO of a company. I want to lend this company money on a short term basis.(60-90 days) What do I need to know about how to go about this.
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

When you lend someone money, you need to have an agreement in writing. In the agreement, you will need to stipulate what laws govern the agreement. That is, if there is a disagreement would you rather have an American or a Canadian court rule on the disagreement. I would lean towards the Canadian court system, since you are both Canadians.

Loan proceeds are not taxable. If you lend from Canada, you won't have any liability to the United States unless you are a citizen or green card holder. Therefore neither you nor your friend will have a taxable transaction by lending the money.

If there's more information you need, please feel free to follow up.

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Customer: replied 4 years ago.
Is there requirements to meet when doing a cross border money transfer for a loan? I am considering a $50,000 amount.
No, there are no requirements as far as the United States are concerned.

** Please take a moment to rate my response as "Excellent" so that I may be compensated for assisting you today. Please let me know if my assistance was anything less than "OK Service", as I am compensated based on whether or not I have assisted you with your issue. If you need further clarifications, PLEASE WAIT TO RATE MY ANSWER UNTIL AFTER RECEIVING FOLLOW UP FROM ME. If I receive anything less than OK Service, I do not get paid, but the Web site will still collect your payment. Thank you for your kind understanding in this matter. If you have difficulties rating, then simply respond stating that you are having difficulties rating and thank me for my excellent, good, or ok service and we can get the rating applied by the site**
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Thank you for the positive rating. Please remember me the next time you have a financial question. Simply enter "MyVirtualCPA" in the subject of your question, and it will be routed directly to me. Thank you again for using JustAnswer