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Do I have to pay back a loan that was later considered as a…

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do I have to pay...
do I have to pay back a loan that was later considered as a gift
Submitted: 2 years ago.Category: Tax
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Answered in 1 minute by:
2/25/2016
Tax Professional: Megan C, Certified Public Accountant (CPA) replied 2 years ago
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16,608
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Thank you for your question -

If the person decided to reclassify the loan as a gift, then you do not have to pay it back. If your loan is in writing, also get the notice that it's now a gift in writing too.

Please let me know if you need anything additional. If not, please rate positive.

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Customer reply replied 2 years ago
The loan was was not in writing but the check state loan in the comments
Tax Professional: Megan C, Certified Public Accountant (CPA) replied 2 years ago

If they now say it's a gift, just get a letter stating that it is now a gift from the person who gave it to you -- that way it's not he-said-she-said.

Thanks, ***** ***** rate positive.

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Customer reply replied 2 years ago
he is now asking for the repayment of the loan
Tax Professional: Megan C, Certified Public Accountant (CPA) replied 2 years ago

You'll have to prove that it was a gift - unfortunately you can't go by an oral agreement if you cannot prove it.

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Customer reply replied 2 years ago
need an answer
Tax Professional: Megan C, Certified Public Accountant (CPA) replied 2 years ago

I gave you an answer -- you need to be able to prove that they later said it was a gift. IF you cannot prove that, then they can take steps if they want to to get repayment.

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