If you are charging a below market rent to your relative then the house is just considered to be a second home. You can't take any deductions for a rental property, only take deductions for property taxes and mortgage interest on schedule A if you qualify.
But you still need to declare that below market rent as income.
So if you want your son to pay you a below market rent on the house using money withdrawn from an ESA that is fine. But you would need to declare the rental income on your tax return and pay taxes on it.
@tolmama
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
