Currently, a parent can sell shares of the family-owned business to the child for a fixed long term interest rate as low as 2.52%, and not incur a gift tax because of the loan rate.

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Another proposed gift to higher ed is student loan forgiveness.

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Is a loan to a relative a gift?

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It will be harder for the IRS to argue that it was really a gift. n Don't make a loan the borrower has no realistic chance of repaying.

FORBES: Sue your sister!

With a demand loan, you recognize each year's forgone interest as a gift at the end of that year. n Even if you intend from the start to begin forgiving a loan annually, show at least some history of repayment first.

FORBES: Sue your sister!

According to the tax code, at the time you make a no-interest term loan, you've made an immediate gift of the present value of the interest you'll forgo over the entire term.

FORBES: Sue your sister!

In this case, the repayment of the loan principal by the guarantor will give rise to gift tax liability on the part of that individual.

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Many people celebrate their tax refund as if it was a gift, rather than the return of a forced interest-free loan.

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The Tax Court has said that's a gift. n If you didn't plan to forgive a loan, but find a relative can't repay you, don't just let the bad loan sit there.

FORBES: Sue your sister!

Soon after the gift was received, a similar sum was channelled to the Chamber itself in the form of a loan from the charity.

ECONOMIST: Corporate lobbying