Torrance, CA asked in Tax Law and Contracts for California

Q: Can we loan 600K to our daughter and her husband interest free with a balloon payment in 20 years?

The interest that we should have charged is less that $56K/year tax free gift

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1 Lawyer Answer
Zaher Fallahi
Zaher Fallahi
Answered
  • Tax Law Lawyer
  • Los Angeles, CA
  • Licensed in California

A: The forgiven interest may be “imputed gift’ and if exceeds $14K a year, you may be required to file a gift tax return. The information presented herein is for general purposes only. It is not intended to, and may not be construed as legal, tax or accounting advice. Neither is it intended for solicitation purposes. For specific advice, please consult an appropriate attorney in person. Good luck. Zaher Fallahi, Business and Tax Attorney, CPA.

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