So my mother-in-law is on the deed of a second home that my wife and I are also on, but my wife and I are the only ones on the mortgage. She lives in the house but pays all the expenses. The kicker is that she has two renters that live there with her that pay rent. Is it considered a rental property? Second Home? We charge fair market value for the two renters, but mom pays under FMV.
If it is a rental property, do I only take the rent from the two renters paying FMV? do I include all of the rent received?
