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http://boards.fool.com/can-i-loan-money-to-a-family-member-and-charge-21110656.aspx
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| Subject: Re: private loan - details, details... | Date: 8/3/2004 11:46 PM | |
| Author: foo1bar | Number: 72733 of 118626 | |
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Can I loan money to a family member and charge zero interest with an indefinite repayment period? Or is this kind of loan somehow a no-no since it can be used to get around gift taxes? You can write the note as 6% interest (or whatever market is) and gift the interest payment. As long as you document that, I would think the IRS would have to agree it's valid. IMO a 0% loan with no repayment time frame is either a gift of interest payments or a gift of principal... I'd rather make it explicitly one or the other, and document it so there is no question if the IRS asks me. |
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