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2. Sources of Income - Joshua loans his son, Seth, $100,000 interest free for five years. - Seth uses the money for a down payment
2. Sources of Income - Joshua loans his son, Seth, $100,000 interest free for five years. - Seth uses the money for a down payment on his home. - Assume that the applicable federal rate of interest is 4 percent. a. What are the tax consequences of this loan to Joshua and Seth? b. How would your answer change if Seth uses the money to invest in corporate bonds paying 8% of annual interest
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