You can let her live there rent free without any tax consequence.
You would be able to claim your portion of interest and taxes as if it was a second home.
If you were paid rent and reported it as a rental, you probably should not claim any losses from it, since you can't claim losses on property rented at less than fair market value to a relative.
You would only be able to claim expenses for the room, in any case, because the rest of the house is reserved for personal use.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
