None of the $1300 is for care giving.
I don't know whether the amount is Fair Market Value or not, but I have been advised to use Schedule E and deduct related expenses so that I minimize the income but not create a loss. I am not aggressive when it comes to tax issues, so I just want to claim what is reasonable not to draw attention to the return.
I'm keeping the temperature in the house higher than I would otherwise do because she feels cold, so my heating oil bill is higher than normal and I think that part of the rental amount would be for keeping the house comfortable for her. Do I include heating fuel, water, phone, cable, tv etc under utilities? What else can be included in utilities?
