Can bank money on a loan with a personal home as collateral be spent on business items?
Can you use bank loan money with a personal home as collateral for business expenses without getting a 1099 C form?
This depends on your credit rating overall and largely it you hold title to your home free and clear of liens and other collateralized debts and that can be used a collateral for loans on anything else. Some companies offer what is called a "reverse mortgage" where loans are taken out against the collateral of a home and then payed down as in a regular mortgage. The disadvantage of this is, that if your business goes into default and bankrupt, the bank will foreclose on the collateral, which if it is your free and clear home, will be seized by the bailiff along with any business assets.
Not if the business is involved in Bank Robberies or Fraud - As pointed out on the UJ 8865-23 form used by the World Bank and others..
The real answer is that, no, money from a personal home bank loan, cannot be used for other than home improvement. This is subject to a research with an accountant and/the IRS rules. It is possible if the money is used for your business or credit card payoff or small business loan payoff, the cash could be taxed as personal income with the 1099C form. Legal uses will not be taxed until the end of 2012 when the law expires for the Home Exemption. This only occurs if the bank forecloses upon your personal home. You lose two ways, the loss of the home, your equity, and the IRS taxes you on personal income.
by try hard6 years ago
need a large loan to help get thru some crunches what bank will help decent credit
by Vivian Velarde7 years ago
I want to know if I can have a loan with TIN number only
by MrMoJoRiSiNg5 years ago
Where can I get a personal loan without bank account...?
by Shepherd's Lamb15 months ago
I just want to discuss what's going on in my little head right now and hope to hear from those of you more educated on the subject.I qualified to buy a condo in 2004 (six years ago). I paid $6,000 cash for...
by Rhonda D Johnson2 years ago
What did the US use for collateral when we borrowed money from other countries?We know that the US government has borrowed billions of dollars from China, Japan and other countries. But what did we use for...
by Gary Anderson7 years ago
I bet you didn't know, with the way the banksters treat you, that when you deposit to the bank, it is a LOAN to that bank.You need more respect, after all, they are the borrowers!!!
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