On 25 Feb 2004 08:40:06 -0800, someone wrote:

Will this be considered....
Is the interest tax deductible for them....
If they sell the house to me below market value.....,

I vote for: Yes, Yes, Sorta.

Its their house, legally.
It is their loan, legally.
Paying their debt for them is income to them not a deduction for you.
You might as well buy them vacation tix or pay off their Mastercard
instead, and let them send the checks to the bank, it will all be the
same as far as IRS goes.


Market value has nothing to do with whether it is a gain or loss, but
there may be a gift tax issue.

See your accountant. And they should see theirs. What is good for
them may not be what is good for you and vice versa (not to say that
they wouldn't do it anyway to help their kid).

-v.