[Justin]

My mother is lending money to her friends with a small interest, 2%. She sometimes borrow money from me and then lend it to her friends. I have no problem with that but the thing is she's not including this income to her tax report because it is very small. Will this become a problem in the future?

[bryon]

Your mother sure knows how to be slick doesn't she? I think filing what she does would be more problematic for everyone involved then what it would be worth.

[Meeva]

Originally Posted by Justin

My mother is lending money to her friends with a small interest, 2%. She sometimes borrow money from me and then lend it to her friends. I have no problem with that but the thing is she's not including this income to her tax report because it is very small. Will this become a problem in the future?

Do you mean 2% per month or per year? Anyway, I agree with Bryon, if the amount is very small and she doesn't do it on a regular basis, it is not worth to include it in her tax report.