Down payment money

I am purchasing a small business. My folks have put up 35,000 for my down payment. Should I leave that money in their account until the time comes, or should I move that money to my account? Are there any tax issues if I do that?



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How lucky you are to have such accommodating parents.

If this was a personal loan to you, and has nothing to do with the business - as in, you personally owe your parents back, not the business, then consider the money yours. Keep the loan between you and your parents.

This website is not about taxes. That's not my forte. I believe anyone can 'give' up to $10,000 a year to a child, for instance, with no tax consequences. It depends on whether this is a loan or a gift.

Please consult a tax practitioner for the specifics.

Kathy

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