Father made an interest-free loan of $15,000 to Son who used the money to buy a certificate of deposit.If Son's investment income for the year is less than $1,000,Father is not required to impute interest income.

Question

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This statement is true. According to the Internal Revenue Service (IRS), if the loan is interest-free and the total amount of investment income earned by the borrower is less than $1,000 in a year, the lender is not required to impute interest income.

Father Made an Interest-Free Loan of $15,000 to Son Who