Making a personal loan to a family member or friend can create unexpected tax issues. If the loan carries little or no interest, the IRS might treat all or part of it as a taxable gift under the below-market loan rules.
Choosing the Right Business Funding Solution
Access to capital helps small businesses succeed and grow. Whether you need to cover cash flow gaps, fund expansion plans, or invest in long-term assets, it’s important to understand all your financing options. This will help you make informed decisions and select funding that aligns with your goals.
Reverse Mortgages Explained: Home Equity, Tax Impacts, and Risks
Home equity is often a massive chunk of a person’s net worth, especially later in life. For homeowners who are house-rich but cash-poor, a reverse mortgage is a tool that allows them to convert a portion of that home equity into tax-free cash without having to pack up and sell the property.
Family Loans and Taxes: Avoid IRS Gift Tax Traps
Lending money to a friend or family member can feel like the right thing to do during difficult times. But without proper planning, a simple personal loan can trigger unexpected tax consequences under Internal Revenue Service rules.
How Does the New Tax Deduction for Car Loan Interest Work?
Generally, except for home mortgage interest, personal interest expense isn’t deductible for federal income tax purposes. With the passage of the legislation commonly known as the One Big Beautiful Bill Act (OBBBA), another exception has been added. That is, you might be able to deduct your car loan interest. But various rules and limits apply.
Helping a Family Member Buy a Home
Making a family loan isn’t the only way to assist a loved one with purchasing a home. If you aren’t concerned about being paid back, a straightforward option is gifting cash. In 2025, you can give up to $19,000 to anyone without federal gift tax consequences under the gift tax annual exclusion.
Applying for a Commercial Loan With Confidence
Few and far between are businesses that can either launch or grow without an infusion of outside capital. In some cases, that capital comes in the form of a commercial loan from a bank or some other type of lender.
If you and your company’s leadership team believe a loan will soon be necessary, it’s important to approach the endeavor with confidence. That starts with having valid, well-considered strategic reasons for borrowing. From there, you need to engage your bank or a prospective lender with a strong air of professionalism and certainty.
Small Business Financing: Securing a Small Business Loan
At some point, most small business owners will visit a bank or other lending institution to borrow money. Understanding what your bank wants and how to approach it properly can mean the difference between getting a loan for expansion or scrambling to find cash from other sources.
Lending Money to a Friend? It Pays To Plan Ahead
Lending money to a cash-strapped friend or family member is a noble and generous offer that just might make a difference. But before you hand over the cash, you need to plan ahead to avoid tax complications for yourself down the road.