J
john
My wife and I transferred $400,000 to my parents' stock
account last year. In order to avoid gift tax, the transfer
was made in the form of loan without interest rather than
gift. Their stock account has not been profitable since
last year
According to $100,000 rule, no imputed interest will be
accessed.
(my wife loan to my dad $100,000,
my wife loan to my mom $100,000,
myself loan to my dad $100,000,
myself loan to my mom $100,000)
Is my assumption correct? Are there any other tax
consequences?
Thanks in advance.
account last year. In order to avoid gift tax, the transfer
was made in the form of loan without interest rather than
gift. Their stock account has not been profitable since
last year
According to $100,000 rule, no imputed interest will be
accessed.
(my wife loan to my dad $100,000,
my wife loan to my mom $100,000,
myself loan to my dad $100,000,
myself loan to my mom $100,000)
Is my assumption correct? Are there any other tax
consequences?
Thanks in advance.