[Alberta's Child]

The IRS establishes interest rates every quarter based on prevailing rates in the market (prime, U.S. Treasuries, etc.).

If you lend a large sum of money (I think more than $10,000) to a family member, you must charge the IRS minimum rate of interest to avoid having your loan categorized as a gift and taxed accordingly.

[DFG]

2024 Gift Tax Exclusion is $17,000.

[ridesthemiles]

I BELIEVE the current NO TAXES LIMIT on gifts is $15,000.

Making a “loan” of $10,000 subject to IRS interest rates would be foolish.

IF you are “loaning’ $$$ to another family member with expectations of repayment-—do a private agreement that you get the principal back-—as a ‘GIFT’ also.