What is the name of your state (only U.S. law)? California
If one enters into a personal loan with someone and draws up a demand loan agreement (with AFR interest), could the lender reduce the amount owed by $10,000 in any given year without any gift and/or income tax consequences? Or would such a gift subject the lender to income tax consequences in the year the $10k gift was given?
If one enters into a personal loan with someone and draws up a demand loan agreement (with AFR interest), could the lender reduce the amount owed by $10,000 in any given year without any gift and/or income tax consequences? Or would such a gift subject the lender to income tax consequences in the year the $10k gift was given?