Unit 7 exam

Under current tax law, what's the maximum tax-free gift an individual can give to another individual annually?

15,000

Pat and Danielle are buying their first home. They don't have quite enough money saved for the down payment and closing costs. Who could give them a tax-free gift to help with the purchase?

Any individuals, such as family members

Georgette and Elise are buying a home together, and have taken out a loan with a private loan company. They'll pay a bit more interest, and larger fees, but they feel it's worth it to have the home they've always dreamed of. What else might the private loan company require?

Collateral

Though not a loan, buyers may be able to enlist the help of ______, who can give them a tax-free gift to help them with their purchase.

Individuals, such as family members

Private loan companies may be found in many places. There are ______, regional, and local lenders, and even individual entrepreneurs who loan money.

National

Anna is selling her home and met a nice young couple she really wanted to sell to, but they couldn't get financing. If Anna agrees to carry part of the loan for the buyers, what does she need to understand?

The risks involved

What do sellers who agree to carry part of a loan for a buyer need to understand?

The risks involved

Which of the following are ways a private loan company insulates themselves from the risk of lending funds to a borrower who has had problems securing them elsewhere?

They may charge higher interest, higher fees, and require the borrower provide collateral to secure the loan.