On October? 1,Bill lends Aaron $8 million.Aaron signs an? interest-free demand note. The loan is...
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Accounting
On October? 1,Bill lends Aaron $8 million.Aaron signs an? interest-free demand note. The loan is still outstanding on December 31.
Requirement
Explain the income tax and gift tax consequences of the loan to both Bill and Aaron.Assume that the federal? short-term rate is 4%.
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