Is it income yet? I made a loan (investment) to a business of a friend. Note is in writing and signed by both sides. It was to help relocate his business. The savings from the move would allow payment after about 4 months in new location. Loan made in Feb 2013 and was to be paid back in in one lump sum in Aug 2013 with interest. Well the move took longer to happen, taking place 7 months later than planned so agreement was verbally altered to allow more time. Interest was to be paid with the principal repayment at time of due date. I should be paid back fully with interest in March or April of 2014. I have not received anything from the loan in hand yet at all. The loan was a simple interest loan with rate better than any CD in the market.
Question: Do I need to declare anything (interest income) toward my 2013 taxes or just declare the whole income amount on my 2014 taxes when I receive the payment back? |