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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.
Required -
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?
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