Re: the deal with taxes when lending money

[Robert <http://dummy.us.eu.org/robert>]

 > From: Flora  <http://www.gmail.com/~flora>
 > Date: Wed, 15 Mar 2017 06:07:01 -0400
 >
 > Actually, you and Noelle could each gift each person ( Mom and Dad) $14,000
 > - meaning $56,000. The exclusion in 2017 is $14,000.
 > 
 > https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes
 > 
 > It depends on if you want to gift or loan.

Ah, good to know.

Thanks.

 > On Mar 15, 2017 12:11 AM, "Robert" <http://dummy.us.eu.org/robert> wrote:
 >  > From: http://dummy.us.eu.org/robert (Robert)
 >  > Date: Tue, 14 Mar 2017 20:52:40 -0700
 >  >
 >  > So, I agreed to lend $50K to mom and dad.
 >  >
 >  > Do you remember what the deal with taxes are when it's no longer a "gift"?
 >  > I assume that there has to be a contract and the interest has to be
 >  > documented.  Is there a minimum interest that needs to be charged, or
 >  > anything like that?
 > 
 > To answer my own question: the answer is "yes", according to
 > http://www.marketwatch.com/story/how-to-lend-money-to-a-
 > relative-without-getting-whacked-by-the-irs-2015-05-12 .
 > In fact, dad and I were talking about a 7-year loan, which means that it
 > fits into the "mid-term" interest rate, which, this month, is 2.03% .
 > (With the fed raising interest rates, I'm guessing this will go up.)