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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13113
Experience:  15years with H & R Block. Divisional leader, Instructor
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What taxes am I looking at paying if I help my sister purchase

Customer Question

What taxes am I looking at paying if I help my sister purchase a home in SC? I am a WI resident. She will be the owner of the home. I am providing funding for the home with a 1.05% interest rate.
I also need to know, if I would be at all liable for injury sustained on the property, etc etc... I need to be certain there is 0% liability to me in this transaction other than the potential loss of the home and money I lend.
Thank you.
Submitted: 6 months ago.
Category: Tax
Expert:  Robin D. replied 6 months ago.
HelloThe lender is not regarded as the owner so liability for injury is not on the lender.If you loan someone money the interest is taxable to you only. You would report the interest you receive on Schedule B.That amount is added to your income and taxed at usual. If your sister defaults on the loan you can claim a loss for a bad debt on your tax return.You are required to click a positive rating if I am to be credited with the response.You have to actively click on a rating and click submit. Smiley Faces or Stars.
Expert:  Robin D. replied 6 months ago.
Checking to see if you responded