In the case of a gift loan of less than $100,000, the imputed interest rules apply if the donee has net investment income of over $1,000.

Question

Quizplus · Accepted Answer

The imputed interest rules apply if the gift loan is more than $10,000, not less than $100,000. Additionally, the rules only apply if the loan is between family members or friends and the interest rate is below a certain threshold set by the IRS. Therefore, the statement is false.

In the Case of a Gift Loan of Less Than