Which of the following is true concerning the tax treatment of interest-free and/or below market...
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Accounting
Which of the following is true concerning the tax treatment of interest-free and/or below market interest loans?
a. The foregone interest is treated as income by the borrower.
b. The foregone interest is treated as a gift by the lender and qualifies for the $14,000 annual gift exclusion.
c. The foregone interest is income to the lender.
d. The foregone interest is ignored for both the borrower and lender and should not be reported.
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