Including a personal loan on my 7

[MrSteve777]

Hey everyone! I'm just about ready to file my papers. I borrowed some money from a very close friend. How do they benefit if I file. Aren't they able to use the amount as a loss? They are worried about letting their tax preparer have the info as the tax preparer also does the rest of the family's taxes and this person is worried that the rest of the family will find out they loaned me the money. She doesn't want them to know but if there is a significant tax advantage I think she should take the write off. Any advice?

Steve

[AngelinaCat]

You will have to list the personal loan, so any other anguish about it is irrelevant.

I am not an Income Tax guru--if I were, I wouldn't be here--but it seems to me that your Income Tax preparer, has a duty to keep his/her mouth shut about your particular situation. If he/she opens his/her mouth to anyone, including family members, that person can be penalized. That is Privileged Information, and is not to be divulged to anyone except YOU.

If you don't trust your current income tax preparer, I would have you get ALL of your information from this person, and take it ASAP to an independent CPA and go from there.

Good Luck to you!