Another WYR

If it's a family member in need I would give them $1000. Anyone who is not a family member I would only lend if I knew they were able to pay back (with interest, lol)

Since you used the word "loan", then I'll go with choice number 1. If it's a family member needing money, I always consider it a gift. If they happen to pay me back, that's just a bonus.

loan to the poor...

Give the loan to who really needs it.

poor

ouch....the tax ramifications alone.....hmm.... I'd say Rich....you would have to report earned interest as income,,,but you would have your investment back plus the after tax interest... if you would go poor, you couldn't claim the lost interest or the initial ammount as an opperating loss since you are not in the business of giving loans....but if you don't charge interest, you would still be responsable for the interest on the potential ammount you could have earned given the federal interest rate at that time...unless it was a family member who was eledgable to recieve a one time, tax decuctable gift...porvided you havn't already given them one, and I completly missed the point of the blog, but I'm still in work mode....and isn't this giving loans to peopel who couldn't afford to pay them back the whole reason the housing market crashed and my equitable value went from good to negative numbers?.....(I'm actually impressed I rememberd that from college....I dont' even do my own taxes.....)

I've done both.

loan it to the pour guy

I think it would matter more for what they are doing with it. But if I couldnt know what they were doing with it, I would probably give to the poor.

@Devon, yeah, lots of people tell me that....sorry, I'm still fuming after reading the PA budget proposal.....