Is the family loan tax deductible?

[Becky Lu]

Hi experts! 

We borrowed some money from family and are paying them interest. Is the interest we pay regularly tax deductible? How do you structure the loan so everything is legit and meets IRS standards? 

Since it's cheaper for us to borrow from family and will also benefit my family to make some interest money, we're likely to borrow even more in the future. If anyone has been doing this and knows how, I'd love to hear your thoughts if you don't mind. 

Thank you very much for your time and expertise. :) 

Becky