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irasmilo: "If it's truly a loan, you should draw up some papers that indicate how much is being borrowed and what the repayment terms are (frequency, term, interest rate, etc.).

You will not have to pay taxes on the loan proceeds. However, your parents will have to pay taxes on the interest they receive from you. You should issue them a Form 1099-INT each year which documents how much interest you paid them that year."

Ira, are you sure of the direction? I certainly do not send my mortgage company a Form 1099-INT every year telling them how much interest I paid them that year. In fact, they send me a 1099 every year.

Curiously, JAFO

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