Family Loans: Does the IRS Care If I Provide My Kids Cash?

Family Loans: Does the IRS Care If I Provide My Kids Cash?

Being a moms and dad, there’s a possibility you may provide your children cash throughout life. Possibly it is to get a bike, to have their very first automobile or to buy their extremely home that is own.

But, when you fork over cash to your loved ones, does the irs (IRS) worry about those loans?

The answer is simple – no for small loans. The IRS is not worried about many loans that are personal your kid. They even don’t care how many times loans are passed out, whether interest is charged or you receives a commission right straight back.

But, much like the majority of things, you can find exceptions compared to that guideline. Continue reading “Family Loans: Does the IRS Care If I Provide My Kids Cash?”