The documents provided by familytreeloans.com will be fully enforceable and can be relied upon for their legality and accuracy in reflecting the transaction initially shared with the company.  With every document package, familytreeloans.com sends a checklist for the customer to review, initial and accept that the loan structure in the documents correctly reflects the deal made between the parties. 

However, the credit and lending decision is solely the choice of the lending party. 

Familytreeloans.com does not and will not underwrite, take accountability for or guaranty in any way, the repayment of any debt between the parties for which the company documents a transaction.  Credit quality is not an accepted responsibility by familytreeloans.com.  Some loans will go unpaid.  There are numerous reasons for a debtor to fail to pay as originally agreed.  Therefore, familytreeloans.com never takes or accepts any liability toward the repayment of the loan. 

The familytreeloans.com customer must agree to indemnify and hold harmless, familytreeloans.com, any parent, sister and subsidiary companies and any individuals related to any of the entities by way of ownership, employment or contracting, from any loss related to a loan going unpaid by virtue of the debtor being unable or unwilling to pay its debt. 

Familytreeloans.com warrants and represents only that its documents provided to its customers will be fully enforceable and can be relied upon for their legality and accuracy in reflecting the transaction initially shared with the company. 

Income Tax Implications

NOTE:  Check with your tax consultant to determine the requirements in your situation as there are tax implications for certain peer to peer loans.

As a general rule of thumb, there are no tax ramifications for either party for loans of less than ten thousand dollars.  But you may be required by the taxing authorities to charge interest on loans greater than that amount.  With the money being utilized for business purposes, interest can generally be deducted when calculating profit on which income tax is paid. 

But, as always with the 'tax man', if there’s a deduction on one side, there’s recognition on the other.  If the business deducts the expense, the IRS and state treasury authorities will seek out the income evidenced on the lender’s tax return.  So with interest-bearing loans, even at low rates, the lender must declare the interest as taxable income if the borrower is deducting the expense in calculating taxable income.

In a dispute, a document package from FamilyTreeLoans.com protects each party from attempts to either misrepresent the original terms or to say they were ever amended.  And ultimately if the borrower is unable to repay the debt, the FamilyTreeLoans' documents will help the lender write it off as bad debt for income-tax purposes. 

Visit the IRS web site and consult your tax advisor for more specific information. 

Thank you for choosing familytreeloans.com for your documentation needs and to Keep Your Money In Your Family.