Which of the following always generate taxable income?
I.Interest free loan over $10,000 from family member.
II.Interest free loan over $10,000 from employer.
III.Interest free loan under $10,000.
IV.Interest free loan over $100,000.

A)Only statement I, II and IV are correct.
B)Only statements II and III are correct.
C)Only statements I and IV are correct.
D)Only statement IV is correct.
E)Only statements II and IV are correct.

Question

Which of the following always generate taxable income?
I.Interest free loan over $10,000 from family member.
II.Interest free loan over $10,000 from employer.
III.Interest free loan under $10,000.
IV.Interest free loan over $100,000.
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A)Only statement I, II and IV are correct.
B)Only statements II and III are correct.
C)Only statements I and IV are correct.
D)Only statement IV is correct.
E)Only statements II and IV are correct.

Quizplus · Accepted Answer

Interest-free loans over $10,000 from an employer and interest-free loans over $100,000 can generate taxable income due to the imputed interest rules. Loans under $10,000 and from family members do not automatically generate taxable income under these rules.

Which of the Following Always Generate Taxable Income