Very elderly parent purchased a home for his adult child but he is the owner. He wants to "sell" the house to the child but the child can only pay 50% of the cost. He wants to accept a promissory note for the other 50% but expects to turn over the other 50%/forgive the note in his will. Sale price is approximately his cost. I understand no loss can be reported. He does not live in the house. Child does not pay rent.

How would this sale be reported on the father's tax return? Child will not be making installment payments, just signing a promissory note. Is there imputed interest? 

What would be a better way to make this transaction? I am assuming he only wants to leave the child only the value of 50% of the house. He may want the cash for the other half now, although he is well of and may not need the cash. There are other children in the family so he has to be fair in their treatment.