I'll try a shortened version of nos's reply.
Multiple choice question:
Who borrowed the money?
A. The parent B. The child
Only one answer is correct. If you insist that both A and B are correct then the answers to all your other questions are the worst possible for the tax liablity of the parent.
>
>
>
>
>
>
>
>
>
Though with one qualification, this shortened version is better than the longer one, the caveat being (as noted earlier) the still missing "C" -- namely, which of the two paid (what principal and what interest) towards satisfaction of the loan.
Have something to add? Share your thoughts — no account required.
Ask the community — no account required