I purchased a house with cash this year and I am the mortgage lender for this property to my son and his wife. I charge them a monthly payment that includes principal, interest and taxes. My assumptions and questions when filing taxes are:
1. I plan to claim the interest portion of the payment as income. Can my son deduct as mortgage expense on his income taxes?
2. I do not plan on claiming the principal and taxes portion as income on my taxes? Or should I claim the taxes portion and then deduct the taxes to zero out?
3. Or should my son claim the taxes even though my name is on the deed?
I could use some direction from someone please
