That's a lot of 1099's floating around and a lot of outstanding loans you are assuming you will recover. One loan that doesn't come back to you and there goes the whole scheme.
Regarding legality - I don't know. Don't loans over a certain size have to be reported and income coming from them (the fees and bonuses you are collecting) have to be reported as income to you? I believe so. So as long as you report all the interest you are collecting off this scheme - maybe it is legal. Your family members get taxed on all the interest they make - then you separately need to file the income that didn't get reported that you are making which is essentially loan-interest that comes back to you. The IRS might not mind because they get to collect taxes twice on the same money.
Regarding legality - I don't know. Don't loans over a certain size have to be reported and income coming from them (the fees and bonuses you are collecting) have to be reported as income to you? I believe so. So as long as you report all the interest you are collecting off this scheme - maybe it is legal. Your family members get taxed on all the interest they make - then you separately need to file the income that didn't get reported that you are making which is essentially loan-interest that comes back to you. The IRS might not mind because they get to collect taxes twice on the same money.
Statistics: Posted by GoldStar — Tue Jan 14, 2025 6:42 pm — Replies 2 — Views 70
