My parents are taking out a home equity loan to lend me money to start a business, does anyone get taxed?

October 8th, 2009 | by admin |
Felt B. asked:


I’m looking to open a shop and my parents offered to lend me some money to help out. They are taking out a home equity loan to lend me about $35,000 to $55,000. I agreed to pay them back. Because they are taking out a loan do they have to pay any taxes? Do I have to pay taxes on this money?

I don’t have any assets so I wouldn’t be able to get a loan for the amounts of money I posted.

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    1. No Responses to “My parents are taking out a home equity loan to lend me money to start a business, does anyone get taxed?”

    2. By goodworker on Oct 10, 2009 | Reply

      $10,000 a year is a gift no tax.

    3. By STEVEN F on Oct 13, 2009 | Reply

      The irs will consider portion of receiving loan this is taxable to be deductible as business expense.

    4. By mister ed on Oct 16, 2009 | Reply

      The loan sure hope you are going to pay them any interest on the loan sure hope you are going to pay them any interest on the loan sure hope you are going to pay them any interest on the loan sure hope you make it hate to see your folks.

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