Thank you PatriciaV very much for your thorough answer.
2) and 3): how do I distinguish between my mother paying rent versus my mother reimbursing me for expenses. Isn't that the same thing? In other words, if she pays me for reimbursement, how can I argue my case to the IRS that she is not paying rent, which I would need to pay income tax on? You are correct to say that my intention is not to make a profit, but simply to cover expenses. It just happens to be the way that the reimbursement for expenses is the same amount as fair market rent. I am assuming expenses would include mortgage interest, principal payment, insurance, property taxes and HOA. But maybe my assumption is wrong with regards to what is included in the expenses. Would you be able to guide me to a place on irs.gov or the IRS code that states my case of not receiving rent but simply getting my expenses reimbursed by my mother and thus me not being obligated to pay income tax on those reimbursements? Would in that case, my property be considered a second home (personal use). I do spend at least 14 days a year over there.
4) In case I don't have to pay taxes on my mother's reimbursement to me, I don't need to worry about the gift situation. If not, I wonder if my mother's payments are still considered a gift if it is linked to her being able to stay at our property. The IRS definition for a gift on your link states: "Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return."
5) That's good news. The link you provide is very helpful. Do you have a reference to the IRS website or their code that describes this situation?
Thanks again for your help. I really appreciate it.
