i am considering giving a personal loan to a friend... it will be a 5yr loan with specific payments monthly for 60 months... are there tax r...

Question

i am considering giving a personal loan to a friend... it will be a 5yr loan with specific payments monthly for 60 months... are there tax ramifications for me other than the interest i charge? and do i even have to charge interest since it is for a friend

Answer

Unless the interest amount comes within the allowed annual gift tax exclusion (currently $13,000), there is an issue of imouted interest. Specific figures are needed for a more informative reply.