My husband and I purchase a home for my mother in law to live in when rent prices were reaching out of control. The house was considered a second home because my mother in law is partially financially dependent on us for support. She pays $1100 a month for rent but my mortgage is $1650, each month we are in the negative $550. How should I file taxes with the purchase of this house? I do not want to pay taxes on her rent payments as income being I pay 1/3 of the mortgage myself.
