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Chea Romine
Chea Romine, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 197
Experience:  CPA, Managing Partner of medium sized CPA firm specializing in all areas of tax and accounting.
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parents paid cash for a house i am living in it and paying

Customer Question

parents paid cash for a house i am living in it and paying them back for loan interest free do i report this my name is XXXXX XXXXX
Submitted: 5 years ago.
Category: Tax
Expert:  Chea Romine replied 5 years ago.

Chea Romine : If you are not paying interest there is nothing to deduct on your tax return. You would still be able to deduct the real estate taxes, but nothing in the way of mortgage interest. So simple answer is nothing to report.

so even though they paid cash out of their bank account and its not a gift i am paying a payment each month i dont have to report it..a friend said a grandparent bought a new car for grandchild as a GIFT and they got in problem with irs

Chea Romine : Different story if it was a gift. If you are paying the money back it is just an interest free loan and nothing to report.

ok thank you for your help have a good night

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