If I claimed this rent on my income tax, I would also be able to claim deductions as a Landlord, so you would have to play it all the way out to determine if this was advantageous or not. I understand the part about not being able to claim my daughter as a dependent if she were "paying rent", (but then, she would have HUGE advantages in terms of Financial Aid). We purchased a Townhome for her to live in while in school because it was less than an apartment. I'm just trying to figure out how a student, (or as a parent of a student, me), paying rent to an apartment, is different than paying for a mortgage. It seems a living expense borne by the parent to provide board for a student, either way.
