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Divorce Source Community Forums >> Tax Issues

kmich91261
member

Reged: 01/15/08
Posts: 119
Loc: Washington, USA

Definition of Gift vs Loan

02/11/08 06:45 PM

I'm doing research and have put a call into some of my friends that work with federal taxes on a regular basis and/or have worked in the IRS.

The question I have is what the difference between a loan and a gift. This is the scenario. My parents pay off a loan or provide money for attorney's fees. The verbal agreement is that I will pay them back, not right now, however when the divorce is finalized.

Okay the way I read the IRS website for definition of gift is that if a loan is interest free or reduced interest loan, the loan would be considered a gift. So for example if say my parents charge me 3% however if I went to a bank they would charge me 8%. The loan would be considered a gift because they aren't charging what a lender would charge. Or the obvious one is if they make it a principal only loan (no interest) then this would be a gift.

Does anybody know an answer to my question?

--------------------
"Get busy living or get busy dying." Shawshank Redemption

Post Extras

Entire topic
Subject	Posted by	Posted on
Definition of Gift vs Loan	kmich91261	02/11/08 06:45 PM
Re: Definition of Gift vs Loan	Pops_IL_CP_Dad	02/12/08 12:26 PM
Re: Definition of Gift vs Loan	kmich91261	02/12/08 01:13 PM
Re: Definition of Gift vs Loan	matilda	02/11/08 07:44 PM
Re: Definition of Gift vs Loan	kmich91261	02/11/08 08:19 PM
Re: Definition of Gift vs Loan	matilda	02/11/08 10:01 PM
Re: Definition of Gift vs Loan	Pops_IL_CP_Dad	02/11/08 10:07 PM
Re: Definition of Gift vs Loan	kmich91261	02/12/08 12:43 AM
Re: Definition of Gift vs Loan	Pops_IL_CP_Dad	02/12/08 01:46 AM
Re: Definition of Gift vs Loan	Avaya	02/12/08 09:49 AM
Re: Definition of Gift vs Loan	Pops_IL_CP_Dad	02/12/08 09:59 AM
Re: Definition of Gift vs Loan	Avaya	02/12/08 01:00 PM
Re: Definition of Gift vs Loan	Pops_IL_CP_Dad	02/12/08 01:14 PM
Re: Definition of Gift vs Loan	kmich91261	02/12/08 12:06 PM
Re: Definition of Gift vs Loan	kmich91261	02/12/08 08:42 AM

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