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4 Answers

Taxes and squae up card reader?

Asked by: livingeditor 945 views YA Discussion

I have used the square card reader for my phone, and a personal friend has let me use his credit cards for some personal loans. Square up is usually used by business but this has been all for personal use, they take there fee for every swipe, and I pay my friend back monthly……Will I still have to pay taxes on this money?
I also know that they will send a form to IRS for taxes…what do I do about this…?
NO SERVICES OR PRODUCTS WERE EXCHANGED..PURE PERSONAL LOANS

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4 Answers



  1. tro on Dec 19, 2012 Reply

    no

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  2. figment_usa on Dec 19, 2012 Reply

    If the IRS has questions, you will be notified. Loans aren’t taxable, but you may have to show them that this is not taxable income if they do question it.

    Do you have a promissory note with your friend? If not, get one now. Get it notarized. Make sure it has repayment terms, interest charges, etc.

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  3. Bobbie on Dec 19, 2012 Reply

    And are you being paid by your friend for working or performing services for this friend that would cause these amounts to be taxable income to you that you did receive as taxable income during the 2012 tax year for this purpose and time in your life. Self employment income schedule C and the SE of your 1040 income tax return for your business income reporting during the 2013 tax filing season for this purpose and time in your life.
    And you should be the one that would know when you would be receiving taxable income during the tax year for this purpose RIGHT.
    Hope that you find the above enclosed information useful. 12/19/2012

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  4. ninasgramma on Dec 19, 2012 Reply

    Your personal loans are not reported on your tax return, and the fees and interest are not deductible. Any tax documents such as a 1099K issued by the credit card company will not go on your tax return.

    However, the IRS may want to see your records to determine if taxable transactions occurred. So keep good records of your loans and repayments.

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