@Hendrix wrote:
I am not looking for deduction. I am simply asking if the borrower needs to pay more tax to IRS if he borrowed $100K or less from a family member at 1% interest.
Not as the borrower. The family member making the loan has some things to be aware of and maybe report.
And I still have no idea what you mean by having investment income. Your family member can loan you any amount of money for any reason, no matter what your financial circumstances are. If they charge below market interest, they have certain tax responsibilities. It has nothing to do with your overall income or your investment income. I would be curious to know where you got that information.
