Any tax implication for borrowing $300,000 from family to buy a home property?

[april4mar]

If I don't pay any interest, there would be no tax implications on either side?

If I do pay interest, then my family will have to report interest income to IRS?

I look forward to hearing from you.

Thanks.

[NCperson]

@april4mar - yes, there are tax implications.   

here is one article on the topic 

https://www.greensfelder.com/trusts-and-estates-blog/irs-publishes-afrs-for-may-2022#:~:text=The%20I....

here are the current IRS rates.  Generally, the interest rate on the loan has to be in the 5% range to avoid tax issues. 

https://www.irs.gov/pub/irs-drop/rr-22-22.pdf

See a lawyer. 

[TomD8]

The major tax implication of an interest-free loan of that size is what's called "imputed interest."  This TurboTax help article explains:

https://turbotax.intuit.com/tax-tips/tax-payments/irs-tax-rules-for-imputed-interest/L7UbulHpC

[april4mar]

Very educational.  Thank you.