Code of Federal Regulations Title 26. Internal Revenue § 26.1.465–20 Treatment of amounts borrowed from certain persons and amounts protected against loss

(a) General rule. The following amounts are treated in the same manner as borrowed amounts for which the taxpayer has no personal liability and for which no security is pledged—

(b) Interest other than that of a creditor;  cross reference. See § 1.465–8 for additional rules relating to amounts borrowed from a person who has an interest in the activity other than that of a creditor or is related to a person (other than the taxpayer) who has an interest in the activity other than that of a creditor.

(c) Amounts protected against loss;  cross reference. See § 1.465–6   1 for rules relating to amounts protected against loss.

¹ So in original;  new section 1.465-6 proposed at 44 FR 32235, but not included in revised proposal at 68 FR 40583 or in enacted rule.

(d) Effective date. This section applies to amounts borrowed after May 3, 2004.