Check the tax issues in family loans
Lending to family members probably dates back to the invention of money. The IRS entered the mix a great deal later, but it now looms large in the equation. Tax problems can arise when you first lend money, as you’re being repaid, or if you’re not repaid. The issues usually involve imputed income, gift tax, or bad debts. Imputed income. Imputed income is revenue presumed earned but neither recognized nor received by the alleged recipient. The