|
|
|
I am involved in some litigation. Son loans money to mom, but there is no agreement on interest rate, or date of repayment. Parties now want to put terms in writing. Son is concerned about imputed interest income to him if the interest rate is not high enough. How high does the rate have to be to not have imputed interest between son and mom? Even if there is imputed interest to the son, can't we use the annual gift exclusion (betweeen $10,000 and $11,000 annually during term of the loan) to offset that amount of imputed interest each year? Thanks for your thoughts.
|
|
