We are renting our home to our daughter for less than the current mortgage and we do not plan to claim any type of tax deduction for this at all. We retain a room in the house just for us as we visit often. The rent is less than $12,000 a year.
My question is... is there a requirement to claim this as income still? If the answer is yes, a follow up question is.... what would prevent us from just letting her stay there for free and having her gift us the amount she pays... since it's less than the $15,000 gift declaration amount?
Again no intention to deduct any expenses, claim depreciation, and if ever sell we expect to pay any capital gains tax if applicable (although at current prices the math negates any at this time).
Thanks ahead.
