Are Personal Loans Taxable? Everything You Need to Know


Are Personal Loans Taxable? Everything You Need to Know

Definition and example of “are personal loans taxable”:

Personal loans are a type of loan that is not secured by collateral, such as a house or a car. This means that the lender has no claim to your assets if you default on the loan. Personal loans are typically used for small expenses, such as consolidating debt, making home improvements, or paying for a wedding. In general, personal loans are not taxable at the federal level. However, some states may tax personal loans, so it is important to check with your state’s tax laws.

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