Thanks, just gave that a read. But I'm still a bit confused.
Given the example numbers here...
Appraised rental value: $5000
Use and occupancy rate ('rent'): $3000
Mortgage: $4000 P&I + $1500 prop taxes = $5500.
Is anything deductible? Mortgage interest? Property taxes? And as a stretch.. any sort of loss for only receiving $3k vs an appraised value of $5k?
Is it easiest to just have the $3k * 5 months = $15k reduce the cost basis rather than claiming it as income? I don't understand why that would be taxed since it effectively is reducing our purchase price in exchange for handling over control at a later date.
Appreciate the expertise here - thanks.
