Name:   GoneFishin - Subject:   Brandon "loan" to his brother lie falling apart Date:   10/27/2023 6:44:30 PM

 Gifts of cash are not taxable income. If it were a loan with interest, the brother had to declare  the interest as income. If it were a no interest loan, the lost interest  based on IRS tables would be considered a gift to Joe. The gift exclusion was around $11,000 for each the brother and his wife.

Based on a $200,000 loan and the IRS rate of minimum interest of around 3.5% or $7,000 per year, there would be nothing for either one to file since the gift was under $22,000($11,000 for brother and wife).

If  the entire $200,000 was gift to Joe, he would not owe any tax. However, the brother would have to file a form 709 since the gift exceeded the limit for the year of $22,000. There is a lifetime exemption or around $12,000,000. So, the excess of $178,000 would apply against the $12,000,000. Still no tax unless he has already gifted over $12,000,000.