was the amount of the payoff fair rental value. this is hard to determine because she could be paying you rent in advance.. say the payoff is $100K but fair rental is $25K per year.
the extra $75K could be a gift or could be advance rental
on the other hand different rules would apply if its deem rent but less than fair rental value.
it comes down to the intent of the parties with the courts and IRS being the judges.
