Timeline for I'd like to loan my son and daughter-in-law money to pay off credit card and student loan debt
Current License: CC BY-SA 3.0
12 events
| when toggle format | what | by | license | comment | |
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| Jan 18, 2019 at 19:29 | comment | added | David Schwartz | @PeteK. Bonafide gifts from one individual to another are always tax-free to the recipient in the US. Making a gift a loan to avoid gift tax doesn't make sense -- if you aren't going to give your money to your children, why do you care about gift tax? And if you are going to give your money to your children, why are you insisting on repayment? | |
| Feb 1, 2017 at 11:10 | history | tweeted | twitter.com/StackFinance/status/826749520910356481 | ||
| Jan 30, 2017 at 13:41 | answer | added | Pete B. | timeline score: 4 | |
| Jan 29, 2017 at 1:03 | comment | added | acpilot | There is a minimum rate that you must charge. It's tiny, but you have to charge it. Consult a tax lawyer. | |
| Jan 28, 2017 at 21:22 | answer | added | Dilip Sarwate | timeline score: 5 | |
| Jan 28, 2017 at 21:06 | comment | added | Dilip Sarwate | Gift tax is assessed on the donor, not the recipient. | |
| Jan 28, 2017 at 18:51 | history | edited | JTP - Apologise to Monica♦ | CC BY-SA 3.0 |
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| Jan 28, 2017 at 18:31 | comment | added | Pete K. | Daniel - The goal is to make the loan in a way that it is tax-free to them (no gift tax) and legally-binding is a minor issue. I had seen some advice that suggested a home equity type loan would be a good idea. I would rather it be interest free but if I had to chart the AFR I would. | |
| Jan 28, 2017 at 18:21 | comment | added | Ben Miller | Related: What are the pitfalls of loaning money to friends or family? Is there a right way to do it? | |
| Jan 28, 2017 at 17:03 | comment | added | Nosrac | So then is your goal to loan her money interest-free and tax-free, but you want a legally-binding secured loan (use the home/equity as collateral in case of non-repayment)? Is all that correct? | |
| Jan 28, 2017 at 17:02 | review | First posts | |||
| Jan 28, 2017 at 18:52 | |||||
| Jan 28, 2017 at 16:59 | history | asked | Pete K. | CC BY-SA 3.0 |