I am letting my Son live in the only home I own. He pays a small rent, that is far from market value, due to the outrageous rental cost these days. I now live in another home that I don't own with a friend of mine. I've read that a small rent that is not fair market value from a family member does not go on a Schedule E. nor is this property considered a rental, Is this correct?
Second Question
I plan on selling this home. I have owned this home since 2017. I used this property on and off as a vacation rental in the years 2020-2021. Fair rental days and personal used days were filed on Schedule E. for those tax years.
With the 24 month accumulative period of use of home out of five year rule/exclusion on capital gains tax, does the months my son lives/pays rent to me in the home count as MY personal use days (even though I don't live there) Will those months count towards the 24 months out of last five year rule? (refer to first paragraph) As stated I am now living with my friend. This is the only property I own. This ties in with question one, first paragraph. If I don't file a schedule E due to renting to family member, there is no way to document personal days used.
This is the only property I own. I assume the five years would be counted, dated back from the month/day/year the property gets sold/closes correct?
