Our daughter and her husband are purchasing their first home. Purchase price of the home is $350K. They are putting $50k towards down payment. We are interested in lending her 300k so that she don't have to take a mortgage and waste her money in interest.
She will be paying $1K a month back to us which we will save in a separate vanguard account in VTSAX for her. We can afford this $300K and we have kept this amount in a no penalty CD for this purpose since last year.
It will not bother nor hurt us if they won't pay this amount back. We are planning to have them pay us $1K/month just to build the sense of ownership in the home for them. We will ask them to stop this 1K a month payment few years from now.
Question: Is there any tax issue / IRS issue for doing this? Should we add one of us on the home title?
Any suggestions/pitfalls to watch out for?
She will be paying $1K a month back to us which we will save in a separate vanguard account in VTSAX for her. We can afford this $300K and we have kept this amount in a no penalty CD for this purpose since last year.
It will not bother nor hurt us if they won't pay this amount back. We are planning to have them pay us $1K/month just to build the sense of ownership in the home for them. We will ask them to stop this 1K a month payment few years from now.
Question: Is there any tax issue / IRS issue for doing this? Should we add one of us on the home title?
Any suggestions/pitfalls to watch out for?
Statistics: Posted by jlm41 — Fri Jan 03, 2025 12:49 pm — Replies 6 — Views 315