Some Family Loans Can Pay Off Wall Street Journal (05/07/02) Vol. 132, No. 12 p.D2; Asinof, Lynn
Parents have the ability to loan money to their children at a cheaper rate than a conventional mortgage. In addition to providing a tax-efficient way to pass on wealth to the next generation, an intrafamily loan--if set up correctly--can also help children get the mortgage deduction on their taxes. Intrafamily loans, among other benefits, also get money to kids without triggering costly gift taxes.