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I just received a check for the amoun of $42,000 for home improvement

loan I like to know how...
I just received a check for the amoun of $42,000 for home improvement loan
I like to know how much taxes on that amount.
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Answered in 3 minutes by:
12/2/2011
CGCPA
CGCPA, CPA
Category: Tax
Satisfied Customers: 3,820
Experience: over 40 years experience in tax matters
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Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

A loan for any purpose is money you have to pay back, almost always with interest. As such it is not income and there are no taxes on the proceeds you received. The interest may be deductible on your tax return if the loan is secured by your home or a rental property and appropriate conditions (as defined by law) are met. IRS Publication 936 addresses that deduction matter and can be accessed at the following link:

http://www.irs.gov/formspubs/article/0,,id=242605,00.html

CGCPA
CGCPA, CPA
Category: Tax
Satisfied Customers: 3,820
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