Legal Question in Family Law in Virginia

My wife and I are 67 years old and plan to retire 12/31/10. Our children are in need of a loan at this time We have the funds and are happy to help them. If we loan them money and have them sign an agreement to repay the loan begining when we retire and make monthly payments until we die or when the amount is repaid, with no interest, will the amount they pay back monthly be considered income that we would have to pay taxes on or lose SS benifits if we go over the earnings limit? Are their forms that we can buy to use for this purpose?

Steven markman


Asked on 5/27/10, 1:58 pm

1 Answer from Attorneys
Jonathon Moseley Moseley & Associates Law Firm

Money that is borrowed or loaned, or paid back, is not income. In effect, you are simply moving the same money around. It is the same moeny already owned. So it is not counted for taxes.

The loan is not counted as income to EITHER the borrower or the lender when it is repaid.

However, if you earn interest, the interest would be counted as income. Because it is passive income (as opposed to salary), intrest income might be treated differently than earned income. I don' tknow the rules on that, but I believe I recall that you have more flexibility in receiving interest income than you do earned salary while on social security.

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Answered on 6/01/10, 2:42 pm


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