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A no-interest loan to a non-family member is taxed as income to the borrower. They impute an interest rate and say that amount is income since a free loan has a
by aianus 9y ago
A no-interest loan to a non-family member is taxed as income to the borrower. They impute an interest rate and say that amount is income since a free loan has a value. I'm not sure what exactly the rate they impute is or how large the loan has to be before they do this.
- jermaustin1 9y agoAh, that is very similar to if the company you work for loans you money. I'm assuming the rate is probably the same as the max interest rate for a family loan.