What Are the Implications of Giving a Gift Versus a Loan to Family?

What Are the Implications of Giving a Gift Versus a Loan to Family?

Q: What is an intrafamily loan?

A: The IRS defines an intrafamily loan as one family member loaning money to another, which creates a formal creditor-debtor relationship. In this case, the person who loans the money can expect worldloans.online/200-dollar-loan/ hours to be repaid (typically in interest payments), and they actually enforce the debt. 1

Q: How is a gift different from an intrafamily loan? (más…)

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