2006-12-03 05:42:50 · 3 answers · asked by beaulderer 1 in Business & Finance ➔ Taxes ➔ United States
Waggy's right. You need to do a mortgage note and file a mortgage with the county recorder. That is basic for claiming qualified residence interest. In addition, if you want the IRS to treat your loan interest as if it were paid to a bank, you have to treat it that way too. Meaning you have to make the monthly payments timely and the rate and term have to be in the range of what you could get on the open market. and of course Dad has to pick up the interest in income.
2006-12-03 09:59:28 · answer #1 · answered by mattapan26 7 · 1⤊ 0⤋
Yes.
You would enter your father's name and SSN on the Schedule A and he would report the interest income on his Schedule B.
Use Excel and crank out an amortization schedule for the loan.
2006-12-03 13:50:42 · answer #2 · answered by Wayne Z 7 · 2⤊ 0⤋
yes, but the loan has to be recorded as a lein against the property, otherwise the interest is not deductible by you.
2006-12-03 15:03:11 · answer #3 · answered by waggy_33 6 · 3⤊ 0⤋