Go Back To Search Results Question My parents are taking out a home equity loan to lend me money to start a business, does anyone get taxed? 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. By Felt B. Posted on 11/24/07 Total Answers 4 Answers- $10,000 a year is a gift no tax. Answer by : goodworker On Date 2007-11-24 16:44:46 No one gets taxed for making of receiving a loan. The IRS will consider a portion of you payments to be interest on the loan. This is taxable to your parents and MAY be deductible as a business expense. Answer by : STEVEN F On Date 2007-11-24 18:16:31 It sounds like a not easy cracking nut,have a look here,you should find something useful for you.http://homeloan.online-assistant.info/cheap-equity-home-loan-rate.html Answer by : SHARON H On Date 2007-11-25 16:08:33 not unless you are going to pay them any interest on the loan!!!! sure hope you make it -- hate to see your folks lose there home!!!! Answer by : mister ed On Date 2007-11-28 06:30:31   Go Back To Search Results