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If a $100 000 demand loan is given to an adult child, would it be considered a gift for federal income tax purposes? If yes, what would the taxable valuation be.
Generally, if you give property to a person, and the property has a value, it is a gift in the amount of the value of the property.
If you give more info, your question could be answered. For example,is the “demand loan” actually a negotiable instrument? If not, what form is it in? Who is the debtor? Is there a market value to the note, if it is a note?
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