I loaned my son $10K to pay off student loans. He is paying me interest. Since the loan amount is below the $15K gift tax exclusion, should I report the interest paid?

mereid51 · ‎June 4, 2019

Interest rate is above AFR. Son is paying back interest and principal.

AlanT · ‎June 4, 2019

Yes, you must report the interest on the loan as income. Even though the amount is below the gift tax exclusion, you are not treating it as a gift.

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AlanT · ‎June 4, 2019

Yes, you must report the interest on the loan as income. Even though the amount is below the gift tax exclusion, you are not treating it as a gift.

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