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Money Paid back to Credit Line

New York, NY |
Filed under: Credit card fraud

May be this question should be asked to Accountant, but I'd appreciate legal advise. Will the money I pay beck to the credit line have to show on my income? If someone just gives me the check I deposit it into the credit line account to pay off the loan, will I be asked where the money came from?

Attorney Answers 2

Posted

Geneally speaking a payment to a credit line is not income to you (it is income to the bank). Depending on the amount it may trigger a report by the bank. I do not understand why you have entered credit card fraud as a label. If this is an issue a face to face meeting with an attorney is in order to get advice.

The answer given is for informational purposes only and does not constitute legal advice. Dwight Bowen is a bankruptcy and consumer attorney and may be contacted at (404) 880-3310.

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Asker

Posted

I entered credit card fraud by mistake.. There is no fraut of any kind.. I am just trying to do the following: Friend of mine needs financial help. I am willing to lend him the money by taking it from my credit line. We are going to secure everything by legal agreement and with attorney. It will be pretty large sum of money (around 200K), loaned to him for about a year. I will have to make transfer or write a check to his account. When he gives it back to me, it will be same way.. either check from his account.. or from the oficial bank that will land him the money. I am wondering if I will have to report the money I will get from him and will it somehow show on my income statement and tax returns. Thanks.

Daniel Dwight Bowen

Daniel Dwight Bowen

Posted

For that amount of money you need competent legal advice. There are issues such as, if you make a loan with no interest it is condered a "gift" for tax purposes. You also need to have a heart to heart talk with your lawyer about how secure the loan is? If you have not used an attorney before that you have confidence in send me an email and i will reply with a recommendation. dbowen9@aol.com make the subject line "new york loan"

Posted

Speaking generally, the only taxable income for you in the sort of transaction you've described is any interest you receive. The transaction will need to be properly documented in case you are audited. You should definitely consult an attorney and accountant before you loan the money.

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