This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.
You have given me so much help in the past. Thanks!
Has to consult with you about one little thing:
One of my friend was in financial difficult situation.
I wrote her a check for $4000 and told her only need to return it when she has the money. We have nothing in written for borrowing or lending or interest.
Later she found a job and managed to balanced her account. She write check back to me for $4500. I told her she should not pay me this much. She insist I should take it. I deposit the check and then give some of my furnature to her that worth like $300.
For situation like this, would her $500 be treated as income to me? (She did not claim that in her tax return).
Could we treat both side giving (my $4000 to her, he $4500 to me) as gift?
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
The transaction was made in early year 2005. Shortly after she paid the money back to me, I moved to U.S. and because I filed jointly with my husband, I was told that I need to file the worldwide income for whole year 2005.