01-11-2013, 05:14 AM
My grandfather loaned me money to purchase my first car. He had a printed contract that I signed with a stated schedule of payments. Every month I made my payment and he gave me a receipt. This is when I was in high school.
Years later a friend of mine wanted to borrow money from me. I found a contract on the internet with a scheduled payback amount and had him sign it. He made his payments and we were both happy.
When you sign a contract you create a legal document and he have a solid commitment from the other person. I highly recommend it. I am not able to tell you about irs ramifications though.
Years later a friend of mine wanted to borrow money from me. I found a contract on the internet with a scheduled payback amount and had him sign it. He made his payments and we were both happy.
When you sign a contract you create a legal document and he have a solid commitment from the other person. I highly recommend it. I am not able to tell you about irs ramifications though.