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Any tax involved when parent lend 100% money for me to buy a house?

Posted on: 09th Jun, 2009 08:06 pm
Hi All,

My question is, if my parent is going to lend me 100% of the purchase price of the house, is there any tax (like mortgage tax) involved? My parent also want me to take advantage of the interest deduction since they will have no income and I will have a high income. Is there any document we need to do to take advantage of that? Thank you for your help.
I forgot to add I live in NYC.

Kin
Posted on: 09th Jun, 2009 08:09 pm
Hi gottabekin

If your parents are gifting the money, then there's a chance that they would have to pay gift tax for that amount. However, in my opinion, it would be better if you could consult a tax adviser and take his opinion in this issue.

Thanks.
Posted on: 10th Jun, 2009 02:32 am
gottabekin

Welcoem to the forum.

Also you mentined that yoru parnets will be funding 100% of the purchase price, in that case you will not have any loan and any interest to apy on the loan and you cannot deduct anything.

Good luck and feel free to ask
Posted on: 10th Jun, 2009 07:54 pm
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