Imputation of interest could be required on all of the following loans with the exception of
A)a loan between a partnership and a 55% partner.
B)a loan between a mother and son.
C)a loan between an employer and employee.
D)a loan between two best friends.

Question

Quizplus · Accepted Answer

Imputation of interest may be required on loans made between certain types of individuals, such as family members, but loans made between friends (even if they are close and consider themselves to be like family) are generally not subject to imputed interest rules. Loans between a partnership and a partner, between an employer and employee, and between a mother and a son are examples of loans that may be subject to imputed interest rules under certain circumstances.

Imputation of Interest Could Be Required on All of the Following