On Apr 20, 6:03 pm, beliav...@[EMAIL PROTECTED]
wrote:
> If someone wants to lend money to a family member to buy a house
> (parent to child, for example), and he charges a prevailing market
> interest rate, say 5.5%, what paperwork would be necessary so that the
> borrower could deduct the mortgage interest on his tax return? The
> lender would have to pay tax on the interest received.
See IRS Publication No. 936, e.g., at
http://www.irs.gov/publications/p936/ar02.html#d0e187,
in particular the following sections:
Part I. Home Mortgage Interest
Secured Debt
Debt not secured by home
Qualified Home
How To Re****t
and other sections as may apply to your case.
Dave
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