One last question. IRS Publication 527 has the following caveat on not for profit rental.
Presumption of profit - If your rental income is more than your rental expenses for at least 3 years out of a period of 5 consecutive years, you are presumed to be renting your property to make a profit.
So since I am making a little profit each month do I still disregard this statement and go by Fair Market Value and claim Not for Profit Rental? This is where my confusion comes in. Do I go by Fair Market Value or Presumption of Profit?
