Problem $3-34($LO$.10)$

Your client Aldridge is a generous individual. During the year, she made interest$-$free loans to various family members when the Federal interest rate was $3\%.$ What are the Federal tax consequences of the following loans by Aldridge?

If an amount is zero, enter $"0".$

a$.$ On June $30,$ Aldridge loaned $$12,000$ to a cousin, Jim, to buy a used truck. Jim's only source of income was his wages on various construction jobs during the year.

$$ This is because the loan was less than ind $$ does not have any investment income. The imputed interest amount for $2024$ is $ $$ b$.$ On August $1,$ Aldridge loaned $$8,000$ to a niece, Sonja. The loan was meant to enable Sonja to pay her college tuition. Sonja reported $$1,200$ interest income from CDs that her parents had given her.

$$ This is because the gift loan was for less than

c$.$ On September $1,$ Aldridge loaned $$25,000$ to a brother, $AI,$ to start a business. Al reported only $$220$ of dividends and interest for the year.

The computed imputed interest amount for $2024$ is $

$$ However, $$ Because this amount $$ exceed $$1,000,$

$$ is imputed.

d$.$ On September $30,$ Aldridge loaned $$150,000$ to her mother, Joan, so that Joan could pay the entrance fee at a retirement home. Joan's only receipts for the year were $$9,000$ in Social Security benefits and $$500$ interest income received.