Do the rules for imputed interest apply to all intra-family no-interest loans, or only to those loans that exceed a specified amount? If there is a threshhold amount, what is it for loans made in January 2012 (5 year term)?
Country relating to Question: United States
State (if USA): California
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Do the rules for imputed interest apply to all intra-family no-interest loans, or only to those loans that exceed a specified amount? - yes the imputed interest rules apply to all below market interest rate loans (i.e. interest free loans) even to related parties.
Albeit, there is an exception for a "deminimus" amount. The threshold is $10,000USD. Therefore if you have an interest free loan to a family member the imputed interest rules should apply unless the principal balance is less than $10,000USD. If the balance is less than $10,000USD the rules do not apply.
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IRS rules citation for your answer?
Check out IRC 7872 - http://www.law.cornell.edu/uscode/text/26/7872
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