gifts and loans

[coyne34]

Arizona
I know I can gift up to $10,000 to my son without tax liabilities. Can I also lend him $10,000 the same year in order for him to buy rental property, also with no tax liabilities? Thanks.

 

[loku]

Gift and loan

If you are married, your spouse can “join in the gift” and the two of you can give him $20,000 without gift tax consequences.

If you give him over $10,000, there is a lifetime exclusion of $675,000 you can apply against the gift.

To answer your question, yes, you can also lend him $10,000, or as much as you want. However, make sure it is a loan and not a disguised gift.