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twputnam: "I need to calculate the reportable and deductible interest on an intra-family loan. Here are the terms:

100,000 loan @ 5% for 20 years. No payments for the first 5 years, interest accrues and added to principal. Payments begin in year 6. How much is interest and you much is principal for each year until loan paid off? I can calculate the payments for a loan without the initial time delay."

I cannot help as to the tax consequences of intra-family loan. Possible phantom income and new loan every year? Sorry.

OTOH, you did not give nearly enough information to calculate any amortization schedule.

--How frequently does interest compound? monthly, annually, something else? I would likely want to match to later payment frequency.

--How often are payments due once they start? Monthly, quarterly, annually, something else?

Regards, JAFO

--Is the loan intended to amortize itself over the last 15-years or will payments be calculated on some other schedule with a balloon payment at the end?

Regards, JAFO

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