seller willing to hold a note for 20g's - Posted by Bill

Posted by Dave T on September 10, 2002 at 15:10:40:

Generally speaking, borrowed money that must be repaid is not taxable income.

In your example, your $50K loan is not taxable income. The fact that you did not apply the entire loan balance to your purchase, does not create a taxable event.

Same thing applies to a home equity loan. Borrowing $20K against the equity in your primary residence is not a taxable event, regardless of how you spend the money.

seller willing to hold a note for 20g’s - Posted by Bill

Posted by Bill on September 09, 2002 at 11:27:54:

i have been approved for $50,000. the seller is willing to take $30,000 and hold a note for $20,000 over 10 yrs…my question is do i have to pay taxes on that money.I would apprecite any comments…Thank you…