I'm trying to figure out the best way (economically) to handle a property that I've rented out and reported as rental income for the past 9 years. It's a four bedroom in a college town, and every year four individuals have rented it, jointly on a shared lease.
Beginning in June 2024, my son (my dependent) will be one of the four occupants of the house. The others in the group will pay market rent. I pay for my son's housing while he's in college.
Should I do individual leases for three of the four bedrooms, with shared access to common areas, and then limit deductions to 75% of expenses? Or would I need (or would it be better financially) to include my son as one of four tenants and report as income his portion of fair market rent? Not worried at all about renting to my own kid -- just not sure of the legal requirements/implications. Thanks!
