Hi Community,
My father is Canadian and plans to help me buy a house in the US. He plans to loan me a large sum of money, which I will pay back at no interest (Canadian Revenue Agency does not tax zero interest family loans). It appears the Below-Market Loan rules (foregone interest at or above AFR) does not apply when the loan is from a foreign non-US persons. As the borrower, do I need to report this to the IRS and if so, what form would I use? Thank you.
