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How to make a loan to a family member?
February 15, 2012 5:12 PM   Subscribe

Where can I find a good contract template for a loan between two family members? What about the tax implications?

Here's what I do know: Googling with the search terms "family loan contract" returns a heaping pile of spam and scams.

Any suggestions for a good sample contract?

I know that the interest rate can't be zero or it triggers gift tax rules for the amount of tax the IRS would consider normal.

Something about a change of rules for amounts over $13K? Or is that only if it looks like a gift?

The loan is a single transfer, and a monthly payback rate with an interest rate.

This question is being asked from the point of view of the lender's best practices, not so much about securing collateral and such, but about accounting and tax pitfalls.
posted by StickyCarpet to Work & Money (1 answer total) 1 user marked this as a favorite
 
I googled "personal lending contract" and ended up on this wiki which provides even better search terms for you to use. Hopefully you'll get some more accountant-y answers, but this may help you start a better research trail.
posted by vegartanipla at 9:10 PM on February 15, 2012 [1 favorite]


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