Hi, my friends and family are lending me money to invest and I have a tax question.

**bizboy** · 10-30-2007 04:58 AM

Hi, my friends and family members are lending me money, I am going to invest the cash into mutual funds, then return their money plus 5% interest in two years. My question is when I do my taxes, they ask if I have stocks, mutual funds and so on. If my friends and family members lend me $50k and I state I have $50k in mutual funds when I'm doing my taxes, do I have to pay tax on that $50k even if I'm holding the money for friends and family members since that $50k that I'm holding is for investments and not income for me?

I know I have to pay capital gains if I make money from that $50K which is 15%.

**crackah** · 10-30-2007 06:10 AM

Thats a really bad return. 5% is not much at all.

**Crucialp** · 11-05-2007 04:38 AM

Hi,

Hopefully more people can post on this topic as im not 100% on sure but I would say yes you would have to pay taxes since you hold the funds in your name the funds are not in your family and friends names. Regardless of what the money is for or who's it is if you have it listed in your name and it's gaining in value you will be taxed on it.

Can anyone else shed some light on this?