Skip to content
GeoDataVision
Thread Options
#1544852 - 05/03/11 06:51 PM Consumer or Comm'l?
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
I don't know why my mind has left me but I'm having trouble here:

$3500 loan to John Doe dba Doe Jewelers to pay taxes. John files Schedule C on his taxes. John's only source of income is the jewelry store. Is this loan subject to Reg Z?
_________________________
Just working here until I get my letter from Hogwarts.

Return to Top
Lending Compliance
#1544856 - 05/03/11 06:55 PM Re: Consumer or Comm'l? HRH Okie Banker
raitchjay Online
Power Poster
Joined: Oct 2009
Posts: 8,759
OK
I believe so. The loan would be to a natural person (John Doe, the dba not changing that) and be for consumer purpose (pay his taxes). That's how i would look at it.
_________________________
I'm fixin' to fix that.

Return to Top
#1544863 - 05/03/11 07:01 PM Re: Consumer or Comm'l? raitchjay
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,333
I concur. A self employed person is still paying his/her own personal income taxes. The only time a loan to pay taxes would be business would be for a non-natural person....such as a corp or LLC.
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top
#1544957 - 05/03/11 07:58 PM Re: Consumer or Comm'l? swiggles
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
I also concur, but wanted to be sure since they've already done it with no disclosures! shocked

*sigh* Thanks
_________________________
Just working here until I get my letter from Hogwarts.

Return to Top
#1544960 - 05/03/11 08:00 PM Re: Consumer or Comm'l? HRH Okie Banker
swiggles Offline
Power Poster
swiggles
Joined: Aug 2001
Posts: 7,333
Well, you're not alone.....also happens when a customer wants to, for example, buy some stock in a company. It's a personal investment, but loan officers want to call it a business loan.
_________________________
The more you sweat in training, the less you bleed in battle.......

Return to Top

Moderator:  Andy_Z