Hal_Al
Level 15

Investors & landlords

Two issues usually determine that: 1. do you have a profit motive in calling it rent and 2. are you charging fair market rent (or more).

 

As a  practical matter, If after deducting all allowable expenses, you are showing a profit, you probably have a rental situation.  If you are showing a loss, you don't. 

 

You may be calling it rent, others would call it helping with expenses by paying a fixed amount (as opposed to dividing up the bills each month).