What are the tax consequences to both lotta and megshow the, Ask an Expert

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Your client, Lotta Bucks, came to your office on Feb 1, 2012 and said that she had loaned her daughter, Meg A. Bucks, $80,000 on an interest free demand note. The lan was mad on Jan 1, 2011 and the applicable federal rate was 3.5% for the entire year. Meg invested the money and earned $2500 in the year (she has no other net investment income for 2011)

What are the tax consequences to both Lotta and Meg(show the 4 portions of the deemed transaction along with the imputed amounts) for 2011?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M958875

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