I'm renting my second home to my parents. They are paying the HUD market value but its not the real market value of what I could make. They are just paying the mortgage and utilities so I'm not making money.
My questions is: My parents are going to pay me rent in cash every month. Do I need to claim that money as income on my taxes? Can I claim it as a gift? Can I use it to pay my credit cards monthly? Or should I make the status of my home a rental home and go that route?
