My parents bought a house for me to use as a rental house, the mortgage is in my parents name, but I paid the down payment, mortgage payment, taxes and insurance on the house. I also rent the house out to tenants. I collect the rent, maintain the property and do everything as if it were my house. We had not considered the end of year tax situation until today. I planned to claim all the rental income on my taxes, my parents will not claim anything as far as taxes go. A couple questions.
1. Is this arrangement ok, I don't want to get my parents into tax trouble. I have read one recommendation for them to lease me the property for $1/month and allow me to sublease it. What is the best option?
2. Does this break any IRS laws?
