Lending money to family members can be tricky sometimes – especially when it comes to taxes. The best way to avoid tax problems is to charge interest on your family loan (because the IRS will tax you for it!), or know the interest-free exceptions. You can gift money to your relatives under the gift tax exemption of $14,000 ($15,000 in 2018), or you can ensure the loan is under $10,000 and won’t be used to purchase income-producing property. Call us for details.
Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in McLean and Tysons Corner, VA. Gilliland & Associates is known for our superior knowledge and aggressive interpretation and application of tax laws. We help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and Twitter.