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Jasonchiefoil
Level 1

How to record cash gift from mom and dad to reduce the loan received from them?

I have borrowed money from mom and dad in my LLC . They want to gift the allowable non taxable amount of  $16,000 each to reduce the loan amount in my llc . Which accounts get debited and credited . Right now the loan from them sits as a liability in my quickbooks account. 

1 Comment 1
Rustler
Level 15

How to record cash gift from mom and dad to reduce the loan received from them?

Deposit the amount as an equity investment to the cash type bank account

then pay down the loan in that same amount from the cash type bank account

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