Trying to establish an initial relationship with banks so as to qualify for a commercial RE loan. Can my business partner transfer an X amount in my business checking account for me to “borrow” and eventually give back, without that X amount getting taxed? If so, is there a maximum amount that can be transferred? Thanks in advance!
@Chris Pa yeah, he can give you a loan for 0%...there's not law against something like that...but what benefit would this provide to you?
Why do you need to go commercial?
@Chris Pa loans are not taxable. If someone or a bank loans you money that is not taxable income.
I believe the IRS requires a minimal interest amount on a loan. I am not sure what conditions make that a requirement. Right now I think it is something close to 1%.
When you are applying for the loan you would be required to list the debt as well as the cash in the bank. It may not help you much.