If renting to a relative, it's best to ensure that the relative is paying a monthly rent that is at least the Fair Market Value in the area. If so, the expenses can be deducted against the rental income, including depreciation of the rental home. Be sure to claim all expenses related to the home that you pay out your own pocket - mortgage interest, property taxes, utilities, repairs, cleaning and maintenance, etc. - and especially depreciation. It's very important to claim depreciation on the rented property as the amount of depreciation will need to be recaptured when you sell the property regardless of whether or not you claimed depreciation.
@chag2020 Including you if you want to weigh in with your thoughts.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
