How much income did jason have to report as a result

Reference no: EM133543585

Question: In 2011, Jason inherited a large sum of money and he decided to spread some of this wealth around by loaning money to his family and friends, as follows: i) He gave his wife, Sarah, an interest free loan of $150,000 and she used the money to purchase a townhouse that she rented out. During the first year, Sarah realized a rental loss of $2,400. ii) He gave his 17-year old son, Trevor, a low-interest loan of $10,000, which Trevor used to start up a business. Trevor made a profit of $12,000 in his first year of business. iii) He gave his 16-year old daughter, Amanda, a low-interest loan of $30,000, which she invested in a portfolio of stocks and bonds. This year, she earned dividends from a public, taxable Canadian corporation of $1,500 and interest income of $600. iv) He gave his brother, Matthew, an interest-free loan of $100,000 to take advantage of Mathew' s lower marginal tax rate. Matthew's investments earned interest income of $8,000. How much income did Jason have to report as a result of these loans?

Reference no: EM133543585

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