What are the tax implications of being a Private Mortgage lender for my daughter and son in law?
My daughter and my son-in-law are embarking on a first-time home purchase. They approached me about my willingness and ability to be a private mortgage lender for part of their mortgage. I am 70 years old this year, continue to work part-time as well as have been receiving Social Security as of last year. I have retirement money in Roth accounts and a SEP IRA accounts. Preliminary Questions: 1. Can I withdraw unlimited money from my Roth? Sep IRA? Is there a maximum amount that I can withdraw? 2. What are the tax implications of withdrawing any amount? 3. Would the money that is paid back to me be considered income? 4. Can I reinvest this money into my retirement accounts?
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