I've placed a pre-construction deposit with a CCRC. If I cancel the contract or am not accepted due to medical reasons I will receive no interest. If I enter the community when it's developed the interest will be credited to the purchase price. I received a 1099 for imputed interest for 2025. I've read conflicting articles online saying since I'm over age 62 this might be considered a below interest rate loan. Is there a way to avoid paying taxes for 2025 on this imputed interest?
Thanks!
