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Sharon made a $110,000 interest-free loan to her son, Todd, who used the money to start a new business. Todd's only sources of income were
Sharon made a $110,000 interest-free loan to her son, Todd, who used the money to start a new business. Todd's only sources of income were $25,000 from the business and $490 of interest on his checking account. The relevant Federal interest rate was 5%. Does either party (Sharon or Todd) have any imputed interest income or expense in this situation?
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