Thank you for your response. I do think I will contact a tax attorney. Is there an option to treat it as a second house and not as a rental? I don't think I can give the house away because the person can't take the loan as they would not qualify due to their age/not working, etc. The loan will still have to be in my name so I assume the bank will want the house in my name as well, right? I feel like it's not a gift since they paid for all expenses from the start. They have paid for everything. Does this change anything? I appreciate your help, I have been so confused as to what to do with this.
