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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 12601
Experience:  Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
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My father wants to transfer the sum of his savings account

Resolved Question:

My father wants to transfer the sum of his savings account to me. He would like me to hold it for a few months in a savings account with my name on it until he gets settled, then return the money when he needs it back. Aside from having to pay taxes on any interest accured while the money is in my account, are there any other financial or legal implications?
Submitted: 11 months ago.
Category: Tax
Expert:  Megan C replied 11 months ago.

MyVirtualCPA :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

MyVirtualCPA :

How are you today?

MyVirtualCPA :

There are no other tax, financial, or legal implications

MyVirtualCPA :

Essentially this is like a loan

MyVirtualCPA :

There is no tax on the funds when they are transferred

Customer:

Can't complain - for a Monday!

MyVirtualCPA :

I know it. Will be better when it's Friday again

Customer:

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?

MyVirtualCPA :

No it should not

Customer:

I thought it would have been more complicated. I'm glad it isn't.

MyVirtualCPA :

No, it's quite simple

Customer:

Is there anything I haven't asked regarding this situation that I should be aware of?

MyVirtualCPA :

Not that I can think of ... this is a very simple transaction tax wise

MyVirtualCPA :

You already know that you owe income tax on any interest you earn

Customer:

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?

MyVirtualCPA :

No, you do not you claim the interest just like you do your normal interest

Customer:

Ok great. Thanks for your time.

MyVirtualCPA :

You're welcome. If you would, please take a moment to rate my response as "excellent"

Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 12601
Experience: Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
Megan C and other Tax Specialists are ready to help you
Expert:  Megan C replied 11 months ago.
Thanks Corrina for your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, or social security questions. It was a pleasure working with you today.

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