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The loan is NOT a taxable income.Simply because under regular circumstances that amount is expected to be paid back.Thus as long as the loan realistically is expected to be paid back - there is no taxable income.
If you are getting the money from your mother in laws - we need to consider - if you are obligated to pay that amount back?If yes - that is a loan - and no need to include it into your taxable income.If you are not expected to pay it back - that is a gift and the gift is not taxable either.But if the gift is above $14,000 per person per year - the donor will need to file a gift tax return - but most likely - there will not be any gift tax liability.
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