What is the best way to pay my mom on a loan?

lawrenc1: What is the best way to pay my mom on a loan?
I am planning to purchase my mom’s $ 1.5 mil home for $ 750k (half price) by paying off the $ 200k mortgage and then taking a loan from my mom for $ 550k ($ 1,527 a month for 30 years interest free). Will my mom have to report this money as income if I open a joint checking account with her and deposit the $ 1,527 every month?

Answers and Views:

Answer by ted.stryker
You have no business buying a home if you cant even afford it…the property tax alone will kill you and you will continue borrowing money from your poor mother who raised a dead beat son. Kids like you make me sick…go make your own life with your own resources and leave your poor mother alone (who could sell the house and make double what you are offering) and live a great life…

Answer by contemplating
It isn’t income. It is an asset (as it came from the sale of a house).
Depending on how much she bought the home for versus sold it for, she might be liable for taxes on part of it (I think if she’s owned it >2 years, the first 250k is free) upon the sale.
Make sure the agreement is in writing, in case there are ever any questions.

Answer by glo_river
I think the best thing for you to do is get your own loan for $ 550k, so there is not all this legal entanglement. Then she can report the sale of her home on the tax year she sold it to you in and that’s it. Not have to worry about the next 30 years.

Answer by aus
Get a promissory note on the loan that your mom lends you. Which will spell out the amount of mortgage you owe your mom monthly and for the length of the term. Fill out check book to your mom, and date them accordingly. Let your mom cash the check when the time comes. She will need to report the interest as income.