I loaned money to a family member about 10 year ago (I wrote "loan" on medical bill checks that I wrote). They are finally getting their finance in order and thinking about paying me back soon. I've heard that if I don't collect interest then the IRS will consider it a taxable gift instead of a repayment of the loan. So how low of an interest rate can I charge for it to be considered a loan? 0.001% ? I was going to collect a back interest payment this year for years past. Then next year or the year after they would pay me back in full.
