Have a Tax Question? Ask a Tax Expert
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
How are you today?
There are no other tax, financial, or legal implications
Essentially this is like a loan
There is no tax on the funds when they are transferred
Can't complain - for a Monday!
I know it. Will be better when it's Friday again
So there is no issue transferring a large sum of money to my account for a few months, then returning it to my father? Will it raise any red flags with the bank or the IRS?
No it should not
I thought it would have been more complicated. I'm glad it isn't.
No, it's quite simple
Is there anything I haven't asked regarding this situation that I should be aware of?
Not that I can think of ... this is a very simple transaction tax wise
You already know that you owe income tax on any interest you earn
Correct. I don't have to count the actual sum as income or fill out any extra tax forms other than claiming the interest, correct?
No, you do not you claim the interest just like you do your normal interest
Ok great. Thanks for your time.
You're welcome. If you would, please take a moment to rate my response as "excellent"