We bought the house across the street from us for my parents to live in as we don't have space to take them in with us. They contribute some towards the mortgage and pay their own utilities, but we cover all the taxes, insurance, maintenance, and part of the mortgage payment as they can't afford even fair market rental. The mortgage is in our name. Parents are not listed as owners. Do I have to report this as income? Is it possible to consider this a "gift" to my parents as it falls below the gift threshold? What is the proper way to handle this situation on our taxes?
