Loan structure/tax advice with loan from family member.

[Jesse Aaron]

My aunt is loaning me cash to buy a property. I have two years to pay her back. She's charging me 0% interest. My plan is to rent the property until I can refinance it through a bank with payments to her along the way of $200 a month and a balloon at the end when I refinance the property. Of course I can't get ahold of my cpa and my closing has already been pushed back once. I'm curious to know how the loan should be drawn up. And if/how much taxes she will owe since she isn't making money on this transaction. Only getting back what she's put in. Also what taxes fall on me other than property taxes. I'm in Ga. Likely searching for a new cpa. 

[Ashish Acharya]

She has to charge you interest. If not, she has to pay imputed interest on the payment you make. You can pay interest at the end when you refi and draw up the debt agreement in such a way that you don't have to pay interest until you pay off the loan. 

The taxes she owes will only be on the imputed interest/interest portion.