# Is a loan from a parent seen as a gift?



## fobs (5 Aug 2010)

If a parent were to loan an amount to their child (interest free/low interest) is this considered a gift if the money is paid back or is it only money given as a gift which is subject to gift tax?


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## DB74 (5 Aug 2010)

If a loan is repaid then it is not a gift

If it is a loan which never gets repaid or where there is no intention to repay the loan (ie a "loan" nudge nudge wink wink) then it would be considered a gift


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