Have you ever found yourself in the uncomfortable position of being asked for a loan by a family member or friend? The tension, guilt, and fear of damaging relationships can make the situation feel like an emotional minefield. In this episode of The Ask Ralph Show, Ralph dives into the difficult question, "How do I handle lending money to friends and family, and what are the tax issues related to making those loans?" With expert advice and real-life stories, Ralph breaks down the best ways to navigate these tricky waters—balancing generosity with financial wisdom, protecting relationships, and ensuring you're aware of potential tax implications. If you’ve ever wondered whether to lend or give, or how to safeguard yourself from emotional and financial fallout, this episode will provide the clarity you need. Are you ready to handle these conversations with grace and confidence?
https://www.askralphpodcast.com/lending-money-to-friends/
Podcast Timestamps:
00:00 Episode Overview
01:00 Listener’s Question: Alex’s Dilemma About Lending $10,000 to His Sister
02:25 Bible Verse: Proverbs 22:7
03:30 Real-Life Story: Stephanie’s Broken Relationship After Lending to Her Brother
08:04 What to Consider Before Lending to Friends or Family #1 Put Everything in Writing
08:35 #2 Charge Interest
09:03 #3 Keep Good Records
09:37 #4 Consider Collateral
09:56 #5 Be Prepared to Report the Interest
10:30 Recap and Closing
Resources mentioned:
https://www.askralphpodcast.com/exploration-of-gift-taxes/
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