I have a similar question and have used what was called the Family Opportunity Loan for both sets of parents (husbands parents and my widowed mother). I do collect some rent but far below fair market value. My tax accountant has always had us list both properties on Schedule E and we always have a loss that we carry over.
To complicate matters, we just purchased a condo to move my mother into the same building as my sister using Family loan again, and plan to actually rent out her original condo. I really want to be able to write off the mortgage interest on this new more expensive unit.
Is using schedule E, as my tax guy does, correct? If not, how do I find someone who is more knowledgeable on this topic to help with my taxes next year?
