Written Loan Agreement Between Friends
For private loans, it may be even more important to use a loan contract. For the IRS, money exchanged between family members may look like either gifts or credits for tax purposes. Sarah Brown accepts a tax of $5 per day for all late payments until the full loan is paid on March 25, 2021. There are free models for loan contracts between friends and family. Borrower – The person or company that receives money from the lender, who then has to repay the money according to the terms of the loan agreement. Depending on the credit score, the lender … Continue Reading