C-Corp Loans

[Joe Hasbrouck]

Hello....new to the forum of BP

I have a c-corp that is loaning money to a new LLC I set up to purchase rental properties in texas. My question is can I legally structure the note where the first payment isn't due for say 2-3 yrs to allow the LLC to build equity?

Can that note be interest free during that period? If I add the loan payment to the c-corp plus the commercial loan, taxes and insurance it does't leave room for much cash flow. First one, so I'm trying to structure it right...

Thanks

[David Beard]

I think you'll run into minimum imputed rates from the IRS. These rates are very low currently, less than 2% I believe, so not onerous. Cash doesn't have to change hands, it's just the taxable income computations that are impacted.