question on loan to child?
My child is thinking about a home purchase and I was considering financing the loan myself, and thereby providing a much better rate, no closing costs, etc.; my question concerns end of year tax considerations.
My child would claim the interest paid, and I would claim the interest income, but how does an individual go about reporting this? Financial institutions send a 1099; can an individual do the same, and how do you go about it?
Anyone have any thoughts on this? Thanks.