Latest / North Star Tax and Legal Briefing
Colorado Family Loans at the AFR: Gift and Estate Tax
A Boulder parent wants to lend her daughter $900,000 for a house instead of a jumbo mortgage. Charge the applicable federal rate on a real promissory note and there is no gift. We walk through the Galli order, why it did not approve an estate discount, the Maxwell forgiveness trap, Colorado's 4.40% tax on the interest, and the insider preference risk if the child files bankruptcy. Full analysis: https://co-legal.net/family-loan-afr-gift-tax-galli-note-valuation-colorado/
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.