Mallory loans property $2135617 to a family trust seven years ago which holds total assigned property of $5601603. This structure allows her to split income amongst the named beneficiaries, of which she takes none. The loan is formed at the prescribed rate of interest, which is 1%.

Several work projects have kept Mallory incredibly busy this past year, which gives rise for her contacting you, her financial planner, making you aware of the situation. She asks you to complete the payment process so her accountant can finish the administrative requirements before the due date. Rounded to the nearest whole dollar, how much interest income will Mallory assume for tax purposes?

Answer rating: 100% (QA)

To calculate the interest income that Mallory will assume for tax purposes we nee... View the full answer