Interest from Family Member

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Is it necessary to pay interest on unsecured loan from Family members from Father mother or Brother.
Replies (5)
not necessary
no need to pay interest

Not necessary, unless the same is likely to be treated as bifurcation of income.

The annual limit for tax-free gifts to individual family members is $14,000, so especially in situations where your loan is going to tip you beyond that point, the minimum interest you'll want to charge is the IRS Applicable Federal Rate. They're also significantly lower than interest rates a bank would charge

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