6. LO.10 Elizabeth makes the following interest-free loans during the year. The relevant Federal interest rate is 5%, and none of the loans are motivated by tax avoidance. All of the loans were outstanding for the last six months of the tax year. Identify the Federal income tax effects of these loans. Borrower's Other Net Investment Income Purpose of Loan Borrower Amount $800 Gitt Richard $ 5,000 600 Woody 8.000 Stock purchase Purchase principal residence 0 105,000 Irene