This doesn't sound like a true for profit rental situation ... instead you have a second home that your family lives in and helps with the bills.
As far as claiming them as dependents they would need to pass all the qualifying tests :
Who can I claim as my dependent?
You
can claim a child, relative, friend, fiance (etc.) as a dependent on your 2017
taxes as long as they meet the following requirements:
Qualifying
child
·
They are related to you.
·
They aren't claimed as a
dependent by someone else.
·
They are a U.S. citizen, resident
alien, national, or a Canadian or Mexican resident.
·
They aren’t filing a joint return
with their spouse.
·
They are under the age of 19 (or
24 for full-time students).
o No age limit for permanently and totally disabled
children.
·
They live with you for more than
half the year (exceptions apply).
Qualifying
relative
·
They don't have to be related to
you (despite the name).
·
They aren't claimed as a
dependent by someone else.
·
They are a U.S. citizen, resident
alien, national, or a Canadian or Mexican resident.
·
They aren’t filing a joint return
with their spouse.
·
They lived with you the entire
year.
·
They made less than $4,050 in
2017(not including SS benefits).
·
You provided more than half of
their financial support. More info
When
you add someone as a dependent, we'll ask a series of questions to make sure
you can claim them.
Related
Information:
·
Does a dependent have to live with me?
·
What does "financially support another
person" mean?
·
Can I claim a newborn baby?
