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Why Should You Charge Interest on Personal Loans?

When lending over $10,000, charging interest is essential to avoid IRS classification as a gift, which could trigger gift tax implications. Adhering to the IRS's Applicable Federal Rate (AFR) ensures compliance while safeguarding your financial interests. Don't overlook this crucial detail when making personal loans! #SmartMoneyMoves #IRSCompliance #InterestRates #PersonalFinance #LoanTips