USA Lending money Internationally

[JPMV]

A friend of mine that lives in Mexico is going through some hardship and is asking me to lend him some money with the promise of paying it back within a couple months.

My question is, if I wire him a certain amount of money from my U.S. Bank Account (Citi) and within the same fiscal year he wires me back the exact same amount to my bank account, do I have to pay any taxes for doing this type of operation.

To be clear, I am trying to say that at the end, when my friend returns the money, I will have the exact same amount of money in my bank account that I had before I wired him the money; Im not getting any gain/interest/profit from this transaction but the satisfaction of helping him.

I am forever grateful to whoever answers my question!

Thanks in advance for your help!

JPMV

 

[kirby]

No income tax as there is no income. But you should probably file a FINCEN 114 (FBAR) report if the amount is over $10,000 USD. Really probably not needed but do so to CYA just in case. Form reports amounts you have outside of the US.