Is now the right time to forgive intrafamily loans?

Description

Abstract: Whether one made intrafamily loans years ago or perhaps this year in response to a loved one’s financial troubles due to the COVID-19 pandemic, consider forgiving those loans. Why? A record-high gift and estate tax exemption amount and a low-interest-rate environment add up to an ideal time to forgive intrafamily loans. This article explains the reasons to forgive a loan and details the income tax considerations of doing so.