We bought an investment property recently - a condo. We want to allow my in laws to live in it indefinitely. We want to charge rent of $3000/mo (fmv). We also want to gift that amount to them each year. $18,000 to my mother in law from both me and my husband; $18,000 to my father in law from the both of us. Can we treat the rental as a rental unit and deduct all the expenses allowed even if we gift them back that amount?
