Lori lends 20000 to her grandson who uses all of the

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Lori lends $20,000 to her grandson who uses all of the money as a down payment on a home. Lori doesn’t charge interest on the loan and the grandson has no investment income of his own. Carson Company offers no-interest loans to its employees up to a loan amount of $5,000. Tom gives a no-interest loan to his daughter in the amount of $10,000. None of the loans above would require imputation of interest under the below market interest rules. The second and third situations fall under the exceptions exempting any loans of $10,000 or less from the below market loan interest imputation rules. The first situation falls under the more generous exception to gift loans between $10,000 and $100,000 where interest is only imputed up to the borrower’s net investment income and no interest is imputed if that income is $1,000 or less.
10.____ Which of the following employer provided meals or lodging would not be excludabl e to the employees?
c. Ted's employer provides Ted with gift cards for five local restaurants as part of a Christmas bonus. d. All of the above would be excludible to the employee. In the first situation, the meals are furnished by the employer, on the employer’s premises, and for the convenience of the employer. Exempt employer provided lodging has all of those requirements plus the fact that the employer provided lodging must be required for the job (the second situation has all of that). The third situation doesn’t meet any of the requirements for excluding meals from income; this looks like a taxable perk or bonus. 11. ____ John’s parents forgive the $2,000 balance owed on a car that they had originally sold to him for $4,000. Which of the following statements likely reflects the correct tax classification of this forgiveness of debt?

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