No, the IRS would not consider your mother as a partial owner. The IRS considers your mother the full owner of the home, since your ownership rights will not kick-in until your mother's death. At this point you have no ownership in the home and the total fair rental value of that home is considered support contributed by your mother. As remaindermen you are not owners.
Therefore, the rental value of the home needs to be included on the Worksheet, or any other calculation method you use, as support provided by your mother. Given the information you provided, if the yearly fair rental value of the home is $10,000, you would include that amount on line 6b of the Worksheet.
As a way of background, here are the requirements for claiming your mother as a dependent.
- The person you are claiming as a dependent must be related to you. This shouldn't be a problem if you are claiming a parent (in-laws and stepparents are also allowed). Keep in mind, however, that foster parents do not count as a relative. To claim a foster parent, he or she must live with you for a year as a member of your household.
- Your parent must be a citizen or resident of the United States or a resident of Canada or Mexico.
- Your parent must not file a joint return. If your parent is married, he or she must file separately. There is an exception if your parent is filing jointly, but has no tax liability. If your parent files a joint tax return solely to get a refund, you can claim him or her as a dependent.
- Your parent must not have a gross income of $4,300 (in 2021) a year or more. Gross income does not include Social Security payments or other tax-exempt income. (For those with incomes above $25,000, some portion of Social Security income may be includable in gross income; for details, click here.)
- You must provide more than half of the support for your parent during the year. Support includes amounts spent to provide food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities.
[Edited 02/24/22|12:00am PST]
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