Fortunately, I have a sister who is awesome enough to give me some cash. Actually it is a long term, no interest loan, and there are no formal papers to such.
The ammount is 7k.
Will I need to report this as income?
Will the ammount ‘trigger’ some sort of interest at the bank? (DEA/FBI/IRS/Homeland Security)
She has given me this because I am really really poor and I would like to keep as much of it as legally possible.
Couldn’t this be taken out of the “gift” area entirely if it was formalized with a simple writing to memorialize it as what it actually is, a loan? That is, assuming that there really is some expectation that the OP will pay it back some day. I don’t know tax law, but I don’t have to pay taxes on my student loans, or car loans, or any other loans–presumably because it’s a net zero, the ‘income’ offset by a matching liability.
Though in this case, it doesn’t sound as if it matters, of course.