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Tax Law (Questions About Taxes)/Fractional reserve Lending


Hi John

 Is it true that if I deposit my paycheck into a bank ( like Bank of America, Chase, TD Bank, and any other big bank)every week. The whole year goes by and I don't take much out. For example out of $700 I take $200 and leave the rest in there.  When I do my taxes at the end of the year. The bank I put the money into, Fractional reserve lended that $$ to other people in businesses for a profit(interest). So they led it out that interest and banks get pay, and they have to claim it at the end of the year to pay their taxes, but this money come from my deposit. So there for I could claim it. Are you aware of this or this is false?

Wake up Juan.  Splash water on your face and listen...

In your examples, you made a 500 deposit into the bank and they will pay you a pittance of interest and send you a 1099 detailing the amount paid. Period

You report that income on schedule b and move on

If if if if you want to participate in the "ownership" of the bank, buy stock.  

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


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