What are the tax implications of loaning money to family members?

When you loan money to family members, it is important to consider the tax implications. The IRS may consider the loan as a gift if it is not repaid, which could have gift tax consequences. Additionally, if the loan earns interest, the interest income may need to be reported on your tax return. It is recommended to document the loan terms and consult with a tax professional to understand the potential tax implications.