What are the gift tax consequences

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Reference no: EM132794292

Question - Anthony loans his daughter Belinda $2,000,000. Belinda signs a promissory note agreeing to repay the $2,000,000 within ten days of a written demand by Anthony. The note does not require the payment of interest.

a. What are the gift tax consequences? Does it matter how Belinda uses the $2,000,000?

b. What if Anthony charges her interest at 2 percent above what he could earn on a certificate of deposit?

Reference no: EM132794292

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