Hallie Wolf owns 2% of the shares of Y Ltd. She is also employed by Y in a middle management position. On August 1, 2022, Hallie received a loan from Y that she used to repay personal debts. Hallie signed a loan agreement, agreeing to pay interest on the loan at the bank prime rate in effect on August 1, 2022, and to repay the loan over three years by monthly payroll deductions. Similar loans have been made in the past to mid-level management employees. Y has a December 31 year-end. 

Determine the tax implications of the loan for Hallie.