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Dispel ‘phantom income’ on family loans

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in Small Business Tax,Small Business Tax Deduction Strategies

Suppose your adult child needs a helping hand to launch a new business or buy a home. Give the child a low- or even no- interest loan. As long as you stay within the tax law boundaries, your family will have no tax worries. However, if you’re not careful, you could be blindsided by an unexpected tax bill.

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