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Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
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Experience:  3+ decades of varied tax industry exp. Tax Biz owner
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My parents are loaning my $28,000 refinance (paid directly

Customer Question

My parents are loaning my $28,000 for a refinance (paid directly to the bank) I am paying them back from an investment account check that seems to be lost in the mail. When I pay them back will they have to pay taxes on that money? If so, is there a better way to pay them back?
Submitted: 2 years ago.
Category: Tax
Expert:  Tax.appeal.168 replied 2 years ago.
Welcome. Thank you for choosing us to assist you. My name is ***** ***** my goal is to help make your life, a little... less taxing.
Q: When I pay them back will they have to pay taxes on that money?
A: No, repayments on personal loans are not taxable income.
Let me know if I can be of further assistance to you regarding this matter.
Expert:  Tax.appeal.168 replied 2 years ago.
Hello again,
Let me add that if they are charging you interest. The interest income is taxable, but not the principal amount.