Parents lend $2,000,000 to their child to start a business. The loan is interest-free and is payable

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Parents lend $2,000,000 to their child to start a business. The loan is interest-free and is payable on demand. The imputed interest is subject to:
a. The gift tax only in the year the parents lend the money.
b. The gift tax only in the year the loan is repaid.
c. The gift tax each year the loan is outstanding.
d. An excise tax.

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South Western Federal Taxation 2023 Comprehensive Volume

ISBN: 9780357719688

46th Edition

Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young

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