
Quoting
debins
Thanks again for the feedback, very helpful! I will charge him the interest rate publicized by IRS.
In addition to my close relative, due to some special circumstances, I am planning to give more than $10,000 as loan to my wife also. Does the gift loan problem applicable/valid (to the loan to my wife) if I do not charge any interest on the loan? Is it true that I do not need to pay any gift tax on the interest (on the amount I gave as loan to my wife) because there is unlimited amount of gifts possible without taxes between wife and husband. Also, please let me know if I need to pay tax on that interest amount because IRS considers that my wife has paid me back the interest.
Please note that I am jointly filing taxes with my wife.