I'm renting a house to my son, but due to a market explosion the FMV has increase from $1760 to $2400 per month, in less than a year. This will probably price him out of the home. Will a lease protect the lower rate or do I have to raise the rent inorder to keep the associated tax deductions. Does anyone know what tax deductions I will lose if I continue rent below FMV and put the property into the personal use category.
Thanks in advance.
