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Sep 27, 2022 4:48 AM UTC
Question

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 reply

Rustler
Sep 27, 2022 1:23 PM UTC

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