WITAXLADY Posted March 14, 2014 Report Share Posted March 14, 2014 mother(wealthy) has lawyer send letter to son asking for payment of $51,000 plus interest of $20,000 since 2008 (nice rate also! ) 3 days later he commits suicide over this. spouse brings taxes back here - (he liked someone else and they went there for 2 years) So I say 1099 for interest,,, wait wife received another letter from the lawyer that son really owed $51,000 plus $$21,600 on back loans he never paid off therefore - no interest! spouse says the back loans were paid but she "settled" for $70,000 and auctioned all their furnishings, his business equipment etc to raise the $$$ so I suggested we take the back loans and charge imputed interest at higher rates from 2004, etc.. plus the interest on the 2008 loan and send 1099 for that. Does this sound rational? Mom needs some income over this... any other ideas or comments? thx d Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 14, 2014 Report Share Posted March 14, 2014 Based on that info, sounds like they paid 51K principle ans 19K interest. But there should be some paperwork about the "settlement", so I'd want to see that to determine what the actual agreement says. Since Mom used an attorney for this, I'm sure she will be reporting the income. Quote Link to comment Share on other sites More sharing options...
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