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#1
04-13-2004, 09:51 AM
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 Re: Cashed checks loaned money to friend. Taxable? regal wrote: - quote - > My situation is unique, and I did a search of the forum and
Ture, IF you ever get audited by either IRS or state, they> could not find my specific answer. Here's the deal: > A friend of mine does not have a credit card due to bad > credit. Last year, he used my credit card to make large > personal purchases and rented a car in my name (also > purchased with my credit cards.) He frequently gave me cash > to pay off my credit card bills, which I deposited into the > bank, and then wired the money via the internet to my credit > card company. The total for 2003 was about $15,000. He also > got into a car accident with his Mercedes, which resulted in > a car insurance repair check of $21,000, of which he > endorsed to me and I deposited into my checking account as > well. After the check cleared, I made a few withdrawls (of > less than $10,000,) in cash and returned it to him. I am > curious as to what the tax implications are for me, as I > didn't technically make any income from these transactions. > I was merely a conduit for him to his purchases. I guess > what I am looking for is reassurance that I although my > non-interest bearing bank account showed that I had all this > extra cash and check deposited into my account, I really did > not make more than what is shown on my W-2. If anyone could > provide any advice, it would be greatly appreciated. MAY want to peruse your banks statements, so prepare documentation now. A larger question however, and I may be wrong, but what is your friend trying to hide? Maybe nothing, but .... I smell a rat. ever hear the term "money laundering? " Cheer$$$, Harlan Lunsford, EA n LA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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04-13-2004, 09:13 AM
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| Re: Cashed checks loaned money to friend. Taxable? "regal" <regalllll123[at]hotmail.com> wrote: - quote - > My situation is unique, and I did a search of the forum and
Not to preach but ponder the following.> could not find my specific answer. Here's the deal: > A friend of mine does not have a credit card due to bad > credit. Last year, he used my credit card to make large > personal purchases and rented a car in my name (also > purchased with my credit cards.) He frequently gave me cash > to pay off my credit card bills, which I deposited into the > bank, and then wired the money via the internet to my credit > card company. The total for 2003 was about $15,000. He also > got into a car accident with his Mercedes, which resulted in > a car insurance repair check of $21,000, of which he > endorsed to me and I deposited into my checking account as > well. After the check cleared, I made a few withdrawls (of > less than $10,000,) in cash and returned it to him. I am > curious as to what the tax implications are for me, as I > didn't technically make any income from these transactions. > I was merely a conduit for him to his purchases. I guess > what I am looking for is reassurance that I although my > non-interest bearing bank account showed that I had all this > extra cash and check deposited into my account, I really did > not make more than what is shown on my W-2. If anyone could > provide any advice, it would be greatly appreciated. > Thanks in advance for your info. If professional Money Lenders are worried about extending credit to an individual, why would a novice jump into the pond? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
04-12-2004, 11:31 AM
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| Cashed checks loaned money to friend. Taxable? My situation is unique, and I did a search of the forum and could not find my specific answer. Here's the deal: A friend of mine does not have a credit card due to bad credit. Last year, he used my credit card to make large personal purchases and rented a car in my name (also purchased with my credit cards.) He frequently gave me cash to pay off my credit card bills, which I deposited into the bank, and then wired the money via the internet to my credit card company. The total for 2003 was about $15,000. He also got into a car accident with his Mercedes, which resulted in a car insurance repair check of $21,000, of which he endorsed to me and I deposited into my checking account as well. After the check cleared, I made a few withdrawls (of less than $10,000,) in cash and returned it to him. I am curious as to what the tax implications are for me, as I didn't technically make any income from these transactions. I was merely a conduit for him to his purchases. I guess what I am looking for is reassurance that I although my non-interest bearing bank account showed that I had all this extra cash and check deposited into my account, I really did not make more than what is shown on my W-2. If anyone could provide any advice, it would be greatly appreciated. Thanks in advance for your info. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| cashed, checks, friend, loaned, money, taxable |
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