Parents lend $2,000,000 to their child to start a business. The loan is interest-free and is payable
Question:
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.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
South Western Federal Taxation 2023 Comprehensive Volume
ISBN: 9780357719688
46th Edition
Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young
Question Posted: