I gave my U.S. LLC an interest-free loan — what does IRC 7872 say about below-market loans between related parties?
I'm a French entrepreneur and I lent my Delaware LLC $200,000 at 0% interest to fund its operations. A friend who is a CPA told me this could create tax problems under IRC 7872 — something about the IRS treating it as if I charged interest even though I didn't. He said there could be 'phantom income.' Is that real? Can the IRS really tax me on interest I never charged or received?
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