Which of the Following Never Generate Taxable Income

question 22

Multiple Choice

Which of the following never generate taxable income?
I.Interest free loan from family member.
II.Interest free loan from employer.
III.Interest free loan under $10,000.
IV.Interest free loan over $100,000.
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• A)Only statement I is correct.
• B)Only statements I and III are correct.
• C)Only statements I and II and III are correct.
• D)Only statement III is correct.
• E)Only statements II and III are correct.

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Definitions:

Stepparent

An individual who is married to a person with children from a previous relationship and may take on a parental role to their stepchildren.

Parental Entitlement

The belief some parents hold that they have special rights or privileges in society and over their children, beyond what is typical or legally recognized.

Noncustodial Father

A father who does not have legal custody of his child, meaning the child resides primarily with the other parent.

Custodial Parent

The parent granted primary physical and/or legal guardianship of a child by a court order.