Money
Andrew Bustamante says a family “transfer of capital” could be tax-deductible if not repaid
Everyday Spy
The Rich Play by Different Rules. Here’s How.
What was said
"Because a transfer of capital through the eyes of the IRS is a tax deductible option for your dad. Meaning, if you ever don't pay back that $10,000, he can literally deduct it against his taxes along with the 3% interest that you also aren't going to pay back. And if you do pay back the loan and the interest, the IRS never has to know about it one way or the other because the transfer of capital was returned."
In the episode, Everyday Spy host Andrew Bustamante describes what he calls a “transfer of capital” arrangement for family lending. He claims that documenting a parent’s transfer to a child in exchange for interest could allow the parent to deduct the amount (and unpaid interest) “in the eyes of the IRS” if the money is not repaid, and he further asserts that if the loan is repaid “the IRS never has to know” because the transfer was returned.
Verification status
Attributed speaker claim
Egleze verified who said this and where. The underlying claim has not been independently established by Egleze.
Source and context
Egleze verified who said this and where. The underlying claim has not been independently established by Egleze.
- Speaker
- Andrew Bustamante · host
- Programme
- Everyday Spy
- Episode
- The Rich Play by Different Rules. Here’s How.
- Clip time
- 12:47
- Original source
- Watch the source segment →
From this episode
Everyday Spy