We are purchasing a second home in the same state that we current reside in. There will be no mortgage, so no interest payment. This will result in our not using this second home for any tax deductions.
My concern is if we need to include this money our daughter is giving us to cover the utilities, HOA fee, property taxes, home insurance, etc. as "rental income". We might charge a bit more each month to put aside in case an appliance needs to be replaced. In our situation, we would need to charge about $725/month to cover all utilities, property taxes, and insurance. We are thinking of charging her $850/month. The going rent price for a house this size in the area it is in is about $2,000-$2,500/month , so she is getting a GREAT deal.
Should we put all the utilities in our name (to include WiFi), or would that even matter? We just don't want this to be classified as a rental property, since we will live there at some point when we sell our current house.
Thanks for your help.
