My Account
Sign up, and you can make all message times appear in your timezone.
Sign up
Report problem with this ad
Start a related thread
Start a related poll
Reply via Boardmail
Sep 4, 2024
9:41
:05
pm
DirtyWater
All-American
They have to recognize the interest income you're paying but get an expense
equal to the interest they are paying on the loan. If those rates are the same, recognized income is essentially zero. No tax.
Tax pros feel free to correct me. I don't know anything about taxes.
Start a related thread
Start a related poll
Reply via Boardmail
Report problem with this ad
DirtyWater
Bio page
DirtyWater
Joined
Aug 29, 2005
Last login
Sep 18, 2024
Total posts
29,509 (829 FO)
Report problem with this ad
Messages
Author
Time
Tax Implications for "Borrowing" Money from Family
trueblew
Sep 4, 9:38pm
They have to recognize the interest income you're paying but get an expense
DirtyWater
Sep 4, 9:41pm
Now that you are under contract, switch back to your original plan of 20% down.
Iman23
Sep 4, 9:48pm
This would make the most sense to me. Sellers won’t care as long as you close.
wildwilderness
Sep 4, 10:01pm
Anyone can be a legitimate mortgage lender. The correct thing to do is for them to issue you a 1098 for the interest
mulletino
Sep 4, 9:52pm
Actually, Dodd Frank effectively eliminated private mortgage lending.
DirtyWater
Sep 4, 10:37pm
Does the same rule apply for a 2nd lien mortgage which is what is being discussed?
mulletino
Sep 5, 12:01am
Applies to loans made for the purpose of buying a residence.
DirtyWater
Sep 5, 1:12pm
If you are getting a mortgage anyway is a higher down payment more attractive to
Cheap Seats
Sep 4, 10:27pm
May provide emotional assurance but it is irrelevant in the end
johnnybyu
Sep 4, 10:55pm
I would guess he’s doing it to keep his new loan payment lower. The loan from
Malathion
Sep 4, 10:56pm
Your lender may require your parents to sign something stating that the money is a gift. Borrowing money to cover the
vegasnative
Sep 4, 10:37pm
True, since your 20% just get an 80% loan
johnnybyu
Sep 4, 10:56pm
Did this pass underwriting?
kapcreations
Sep 4, 11:46pm
Underwriting will say it’s a gift and you and Parents will sign additional
Idacoug
Sep 5, 6:07am
Unless documented as a 2nd mortgage which is common.
mulletino
Sep 5, 10:13am
Also, trueblew, you don't want your family calling something a gift that is truly a loan. That's called loan fraud and
mulletino
Sep 5, 10:14am
Owing money to family is no fun
ovalY
Sep 5, 6:58am
Report problem with this ad
Posting on CougarBoard
In order to post, you will need to either
sign up
or
log in
.
Report problem with this ad