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If a Loan Has Been Made to a Related Party

question 979

Essay

If a loan has been made to a related party, what are some considerations for determining whether the loan is a bona fide debt or is, in fact, merely a gift?


Definitions:

Abbreviation

An economized version of a word or phrase.

ROM

Range of Motion; a measure of the extent to which a joint can go through all of its normal spectrum of movements.

MS

Multiple Sclerosis, a disease in which the immune system eats away at the protective covering of nerves, disturbing the communication between the brain and the rest of the body.

Shoulder

A joint that connects the arm to the torso, consisting of several bones, muscles, and a complex range of motions, making it one of the most mobile joints in the body.

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