How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask PDtax Your Own Question
PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 4475
Experience:  Tax professional and business consultant for 35 years.
64119565
Type Your Finance Question Here...
PDtax is online now
A new question is answered every 9 seconds

In 2015 I loaned my father $30,000. A Promissory Note &

Customer Question

Hello,In 2015 I loaned my father $30,000. A Promissory Note & Security Agreement was signed by both of us. To secure the loan my father quit claimed a property he inherited in Indiana. In a few days we are closing on the sale of subject property that I hold title to and with the proceeds from the sale my Dad will pay off the loan, and an additional $10,000 for home repair expenses.I would like to know what is the best approach to getting paid so I don't end up owing any taxes from the sale or potentially getting audited since the funds are from $ I lent. From what I understand I can either 1) Quit claim back the property, in hopes that he will pay me after receiving the $ from escrow - not my favorite choice. 2) Have the title company issue me a 1099 upon closing for the $ that is owed to me and record it in my 2017 tax return.I would like to know the best approach or if you can suggest another way of handling this so it is my father that ends up paying the capital gains on the sale of the house and I get paid without having to deal with the IRS.Thanks!
Submitted: 5 months ago.
Category: Finance
Customer: replied 5 months ago.
I want to add that my father and I are both residents of California. Secured property for loan is located in Indiana and the title company is in Indiana.
Expert:  PDtax replied 5 months ago.
Hi from just answer. I'mCustomer I can offer a better way, but I won't post that online. I'll make the offer to you in a phone call.