Tom loans $11,000 to his son, Jerry. Why would interest not be imputed on this loan? Interest would not be imputed because Jerry has unearned income of $500 Interest would not be imputed because the loan is less than the amount of the annual exclusion. Interest would not be imputed because Jerry's earned income is less than $1,000 Interest would not be imputed because loans of $100,000 or less are exempt from both income tax and gift tax consequences