C 12 54 Below Market Loans On October 1 Sam lends Tom 10 million Tom signs an

C 12 54 below market loans on october 1 sam lends tom

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C 12-54Below Market Loans. On October 1, Sam lends Tom $10 million. Tom signs an interest free demand note. The loan is still outstanding on December 31st. Explain the income tax and gift tax consequences ofthe loan to both Sam and Tom. Assume that the federal short term rate is 5%.
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Comprehensive Problem C 12-55
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