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woodtic48
Apr 13, 2010, 08:20 PM
I am a Canadian citizen but my son is a resident alien in the USA and is married to an American. I would like to lend him around $120,000 interest free to pay his mortgage. Can I transfer this amount to him without any problems? Are there any implications that we should know about? Thanks for your help

ebaines
Apr 14, 2010, 10:42 AM
You can transfer this amount into the US without concern. However, be careful about the loan part - the IRS could determine that you are not making a loan but a gift, and they could assign an assumed interest amount to the loan, which they would then say is income to you. More reading here: Loans Among Family Members at SmartMoney.com (http://www.smartmoney.com/personal-finance/debt/loans-among-family-members-9654/)