JohnB5677
Employee Tax Expert

Investors & landlords

 

Yes, you should include the income and the interest on Schedule E, but because you rent to relatives it can be tricky.  

  • You must charge a fair-market rent.
  • To prove the rent rate is fair, you can get information from places where similar properties are listed for rent, such as Craigslist.
  • You can also get a rental appraisal from an independent appraiser or a realtor.
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