Thursday, August 18, 2011

Taxes: SM LLC given loan with interest from Dad - how to report to IRS?

As for the loan from your Dad the short answer is that it is not reported as income. You can report the money you pay him as interest on the loan of capital (should have a written contract as support). If you are trading stocks you will need to report every sale as they all will be reported to the IRS on a 1099B. As for help from a tax professional you might find that they ter as soon as you say something like "day trader". The only ones that will still be there are going to charge you a great deal (and they will earn it). You would be wise to go take a tax preparation course and learn how to properly do them yourself. Don't just go online and try it without some training or you will be spending a great deal of time dealing with letters from the IRS.

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