A. Here are the current interest rates. IRS interest rates 3rd quarter of 2018 Tax overpayments 5%(4% for corporations; 2.5% for the portion of corporate overpayments exceeding $10,000) Tax underpayments 5%(7% for large corporate underpayments)
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If I provide monetary support to relatives, should I give a gift or a loan?
A. An intrafamily loan rather than a gift can be attractive if you’re not ready to part with your wealth — for example, because you’re concerned about having enough money to fund your retirement or you feel that your children aren’t ready to handle the responsibility. Intrafamily loans allow you to provide family members with […]
Loans To Relatives
Loans To Relatives PUT ALL FAMILY LOANS IN WRITING Documentation is critical on any family loan. If the loan goes bad, you’ll want to claim a tax deduction. But, without proper paper work, an IRS auditor will say the transaction was a gift, which means no deduction for you and a possible problem with a […]
Rule Of 72
The Rule Of 72 The Rule of 72 is a simple formula that lets you estimate how long it will take an investment to double at a stated interest rate. You simply divide 72 by the prevailing interest rate. For example, if you’re investing $1,000 at a 6% rate, it will take 12 years for […]
Where To Deduct Your Interest Expense
Learn where you can deduct various types of interest in order to receive the maximum tax benefit, including student loan interest, mortgage interest, rents & royalties, etc.