How to structure a loan to a family member
high as 40 percent.
When you and your daughter have the basics of the agreement worked out, visit an attorney to prepare a detailed promissory note and have it recorded with the county recorder’s office or similar agency. If it’s not recorded, your daughter won’t be able to deduct her interest payments.
You, of course, will need to declare the interest income on your future tax returns.
If all of this sounds too complicated, the well-respected National Family Mortgage will do all the work for you. It charges $750 to process intrafamily loans of up to $100,000.
You can get more information at www.nationalfamilymortgage.com or by calling the firm at 1-888-636-1990.