@TurboTaxPatriciaV Thank you!
I trust the professionals but just want to make sure this option is safe without paying penalty to IRS, as I did not see IRS reference which states this is an option.
I went through Publication 523, page 13, Worksheet 2, Item 5, Determine your “basis adjustments” - which are the list that I can subtract from the cost basis. But I did not see an item regarding to the rent-back income. Also checked Publication 551, Basis of Assets, and did not find anywhere states it.
Can you help again to show me the section in IRS publication which mentions this rent-back income can be treated as reduction of the cost basis? Appreciate your help.
