Intrafamily loans: Know what you’re getting into

Description

Abstract: When money is tight, and particularly when job losses affect an extended family, the prospect of an intrafamily loan often comes up. But, if not conducted carefully, these arrangements can lead to awkwardness, if not outright conflicts. There may also be tax implications. So, one needs to ask: Is this really a loan, or would it be better to regard it as a gift? And what indicators does the IRS use in determining whether it qualifies as a loan for tax purposes?