In the United States, I am considering a deal with a very close friend that would involve a loan. Please no answers warning about the potential emotional problems this poses. It's not a concern.
I'm fairly certain that I'm required to charge interest and, then, to report the interest as income.
This loan will be three year or less, in the amount of around $50k. It is for an investment.
Are there IRS guidelines for the structure of these loans? Is there a minimum interest rate? Does it need to be compounded monthly?