Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

If you take a personal loan to pay off credit card debt,

will that be considered taxable...
If you take a personal loan to pay off credit card debt, will that be considered taxable income by the IRS?
The debt has not been negotiated down and the loan will be paid back over 5 years.
Show More
Show Less
Ask Your Own Tax Question
Answered in 45 minutes by:
8/25/2017
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,658
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

No. The personal loan proceeds will NOT be considered taxable income by the IRS, and you do not report it on your tax return.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Ask Your Own Tax Question

Just following up with you to see if you have any other questions. If so, please let me know so I can further assist you.

Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,658
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified
Barbara and 87 other Tax Specialists are ready to help you
Ask your own question now

Thank you for the positive rating of my answer. It is very much appreciated!

Have a great weekend!

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Barbara Your Own Question
Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 6,658
6,658 Satisfied Customers
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.

Barbara is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I am not sure if I am posing this question in the correct
I am not sure if I am posing this question in the correct category. .... I totaled my car, and owe about 3 Grand more than my insurance paid on it. My credit is terrible high 500?... I used to dance w… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,410 satisfied customers
I am confused on closing an S Corporation with cash, loan to
I am confused on closing an S Corporation with cash, loan to owner, and a credit card that he is going to pay off personally. … read more
taxmanrog
taxmanrog
Master\u0027s Degree
1,053 satisfied customers
I have personal credit card debt, and business credit card
Hi I have personal credit card debt, and business credit card debt, this year 2017 i am trying to pay it with additional income and reducing expenses, my question is since i will be generating more ca… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
I borrowed 31000 from my 401k to fix my house to put it on
I borrowed 31000 from my 401k to fix my house to put it on the market. It sold for 195,000. Now I am wondering what the smartest thing to do is to buy a new house. We are moving from NH to MN. Either … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a client that has credit card debt of $30,000.00. What
I have a client that has credit card debt of $30,000.00. What would you suggest to consolidate and possibly borrow in order to make an offer to pay off the cards in full. What is the best way to gathe… read more
Barbara
Barbara
Enrolled Agent
6,658 satisfied customers
In 2011 I was able to sell my business and pay off my debts.
In 2011 I was able to sell my business and pay off my debts. I purchased a new home and paid cash. I have one car payment. My question has to do with Federal Tax laws. I was able to negotiate with 4 C… read more
InfoTaxes
InfoTaxes
Owner
Bachelor's Degree
256 satisfied customers
I have the following situation.A national lender is trying
I have the following situation. A national lender is trying to tell me that I need to pay an IRS tax bill that the IRS hasn't even said I have to pay. I filed an amended joint return and the IRS hasn'… read more
Jax Tax
Jax Tax
Senior Tax Attorney
Master's Degree
1,363 satisfied customers
Tax Expert Do you know Reduction of Tax Attributes Due to
Tax Expert Do you know Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustmen? We just closed last Nov on a short Sale (Freddie mac) We settled on 1st but a few… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have received a Notice of Federal Tax Lien for back income
I have received a Notice of Federal Tax Lien for back income taxes. I'm in the process of negotiating a payment plan with the IRS. My question is this: I really need a new car. I currently owe about 8… read more
Gerri A Harrison CFP EA
Gerri A Harrison CFP EA
Financial advisor/Tax preparer
Bachelor's Degree
86 satisfied customers
I loaned someone money so they could finish building a house.
I loaned someone money so they could finish building a house. They promised to pay back the loan which , to date, they have not done. Would this loan be considered as income received and therefore tax… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I own a C Corp that owes back 941 tax. Most of the tax owed
I own a C Corp that owes back 941 tax. Most of the tax owed is on two share holders pay, and one employee. Can the liability amount be negotiated down along with penalties and interest? With the curre… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
Hi, I Have A Florida Corporation Subchapter S. I Am In A Situation
Hi, I Have A Florida Corporation Subchapter S. I Am In A Situation Where I Need To Borrow Money From The Corporation (Take A Loan And Pay It Back With Interest) However There Is Not Enough Cash In The… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
What is the difference between debt reduction and debt consolidation
What is the difference between debt reduction and debt consolidation? Which one will least effect a negative standing on my credit standing and how will it affect getting future credit? What should I … read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I have a small Corp business and have used my personal credit
I have a small Corp business and have used my personal credit cards to pay some bills for a total of $30,000. I am considering cashing in some IRA stock to loan the company the money to pay off the bi… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I know your not supposed to withdraw from your 401K ...
I know your not supposed to withdraw from your 401K account...ever.... but I have been ''swimming" for almost year juggling all bills - credit cards, installment loans and including my mortgage recent… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
My husband did not pay taxes for about 5 years and we now ...
My husband did not pay taxes for about 5 years and we now want to "make good" with the IRS. The years go back to 1999. Is there any hope we could negotiate the penalty and interest that has accrued?… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
Pay off Credit Card or Use the money to grow more money
Because of medical costs over the years, we have added up to almost $30,000 in credit card debt. We are now about to sell our house and receive close to $30,000 in equity. I have also had training in … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
How to avoid paying taxes on retirement incentive income
My husband took an early retirement which will be effective March 2006. His employer (he works for the state) offered a bonus of $90,000 for those who would retire. He will still get his full pension … read more
Christopher Phelps
Christopher Phelps
Sole Practitioner
Master Degree
1,180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x