I moved into an assisted living facility 3 years ago. I moved out of what was my primary residence. My daughter was living with me at the time, and she continued to live there as her primary residence. She pays me $1200 a month to pay mortgage ($485), utilities (~$100), HOA fees ($990 every 3 months), taxes ($2978 a year), and Insurance ($1675 a year). I lose about $1800 a year on this arrangement, but I really am only a pass through for her to pay the bills. She is paying about 50% of Fair market value rent. I use the Standard Deduction.
The first 2 years I paid taxes on the "rental income" and deducted the HOA, utilites, and insurance. As I read about rental income versus personel use, I am wondering if I dont have to report the pass through rental income? I dont take any deductions for the taxes and mortgage interest because I dont itemize.
Is that ok? Could I even go back and adjust my past years tax returns to make the same changes?
