Loan Made to Another Party

Report a loan that you, your spouse or your dependent child made and the income produced by such a loan in Schedule A. However, you do not need to report loans to certain members of your immediate family, as discussed below. 
Loan to Another Party: Examples
For You, Your Spouse, and Your Dependent Children

Schedule A

The applicable statute excludes certain loans to family members from the reporting requirement. You do not need to report loans made by you or your spouse to each other or to a parent, sibling, child, or grandchild.

Report a loan made to another party if the value of the loan was more than $1,000 at the end of the reporting period, or if the loan produced more than $200 in income during the reporting period. The other party may be either a person or an entity.

Block A: Identify the party who owes the liability and write “loan” or “note.” If the party is a close relative, identify the party as a “family member” (e.g., “personal loan to a family member”). If the party is a natural person (i.e., a human) who is not related to you, identify the party by last name only (e.g., “personal loan to Mr. Doe”). If the party is an entity, identify the party by name and location (e.g., “personal loan to Wilson Widgets, Newark, New Jersey”).

Block B: Report the value of the loan by marking the appropriate column.

Block C: Report the total amount of income that the loan produced during the reporting period by marking the appropriate “Amount” column. If the amount of income is more than $200, you also need to report the type of income by marking the applicable “Type” column(s). Loans normally produce interest income.

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This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.