Interactive U.S. Tax Planning Guide
Below-Market Loan Simulator
See the tax consequences of loans with low or no interest. This tool demonstrates the "imputed interest" rules under IRC § 7872.
Loan Parameters
Relevant for the $100k gift loan exception.
5.0% (Illustrative)
Calculated Tax Impact
Based on $2,500 of forgone interest.
The Two-Step "Deemed Transfer"
Lender
is deemed to transfer funds to...
Borrower
who is deemed to immediately repay it as interest.
Lender's Tax Consequences
Deemed Transfer (Gift):
A non-deductible gift of $2,500.
Deemed Interest Income:
$2,500 of taxable ordinary income.
Borrower's Tax Consequences
Deemed Receipt (Gift):
$2,500 received, not taxable income.
Deemed Interest Payment:
$2,500 of non-deductible personal interest.
Expat Tax Strategy Chooser
Compare the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC) to see which might be better for your situation.
Your Financial Profile (2025)
Option 1: FEIE
Exclude up to $130,000 of income.
U.S. Taxable Income: $20,000
Final U.S. Tax (est.): $2,215
Option 2: FTC
Taxable Income: $150,000
U.S. Tax before Credit: $28,326
Allowable Foreign Tax Credit: $25,000
Final U.S. Tax (est.): $3,326
