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Financial Planning / Tax Strategies


Subject:  Re: private loan - details, details... Date:  8/4/2004  3:35 PM
Author:  lorenzo2 Number:  72735 of 127637

JAFO is right - there's something called Applicable Federal Rates. A letter is published each month, showing minimum rates for short-, medium-, and long-term loans. If you charge less than that, then the shortfall is treated as a gift. That's actually quite sensible, and I have no problem with it. Ok, I do have a problem - I don't yet understand the damn tables displayed in the monthly letter, an example of which can be seen here:

President, 1st Bank of Lorenzo
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