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5 Recent Tax Changes That Make Informal Loans Less ‘Informal’ Under IRS Rules

Brandon Marcus

A handshake used to seal plenty of deals. Now, the IRS wants paperwork, interest calculations, and in some cases, formal reporting to back it up. Plenty of families and small business owners rely on informal loans. A parent fronts money for a down payment. A friend helps launch a startup. A sibling bridges a cash crunch. Those transactions may feel personal, but federal tax law

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