IRS Tax Advice – Get The Right Help
It is imperative that one ask for IRS tax advice from a trained professional as there are times when you really need help to bring down those tax bills that have been charged to you at big amounts. When you lend money to members of your family you have to be careful. Documents must be complete so that the IRS would know that the money you lent wasn’t intended for a gift. As such, all needed information required need to be presented like the interest rate applied to the loan and the schedule of payment that you and your family member have agreed on. IRS tax advice would tell you that a note from the one who borrowed the money must be submitted too. It should contain pertinent income documents including his expenditures to prove that he has the capacity to pay the money he owes you. This advice would also inform you that without these requirements, the IRS would think that the money that was lent was given as a gift therefore making all gift tax rules applicable wherein you, as the lender usually is responsible for paying the taxes.
So now knowing the conditions stated above, before closing all lending transactions, you must make sure that each piece of advice has been looked into and that the information learned from the IRS tax advice has been thoroughly understood by all those concerned. If the conditions and requirements stated by the advice have not been followed through, you might need to face big difficulties when the time comes to file your taxes.
Also in addition to those stated above, another piece of information that would be one to take into consideration is that family relations have been detroyed more than once before due to loans that were not settled or clearly planned out and scheduled. Complex rules of the IRS and all other tax exceptions add to the confusion that taxpayers have to face. Some good advice is the best solution to be able to relieve one from these stressful and time consuming issues. When you have an experienced Certified Public Accountant or a legally recognized tax professional with a good background to handle your tax affairs, creating structures for family loans will be organized and well thought of therefore saving you the hassle you would have got when you didn’t have one.