@Carl wrote:
First, if you are renting at below FMRV, and especially if you are renting below FMRV to a family member, once your rental expense deductions get your taxable rental income to zero, that's it.
If you are renting to a family member who is not using the dwelling unit as his/her principal residence and is not paying fair rental value, then every day of that arrangement is considered a day of personal use.
As a result, no rental expenses are allowed as deductions on Schedule E; only deductions for property taxes (subject to limitations), mortgage interest (also subject to limitations), and certain casualty losses can be deducted (on Schedule A).
