You'll need to sign in or create an account to connect with an expert.
Yes. a 'not for profit' rental is not allowed a negative amount to off set other income. However you must report any and all income. Unfortunately, since the Tax Cuts and Jobs Act (TCJA) there is no deduction for the expenses.
The not-for-profit rental income is reported as follows and can be found in IRS Publication 527. (Page 25)
Where to report.
Report your not-for-profit rental income on Schedule 1 (Form 1040), line 8. If you itemize your deductions, include your mortgage interest and mortgage insurance premiums (if you use the property as your main home or second home), real estate taxes, and casualty losses from your not-for-profit rental activity when figuring the amount you can deduct on Schedule A.
Sign into your TurboTax account:
So the fact that they are relatives (children) in in a family home doesn't make a difference? Couldn't it be considered a cash gift since I'm physically paying the mortgage?
Yes, it's possible it could be a gift to family. In 2023, the annual gift tax limit was $17,000. For married couples, the combined 2023 limit was $34,000. This means each spouse (if applicable) can give $17,000 per person.
You should seek advice from someone knowledgeable about gifts and gift tax return requirements to be sure you have not gone over the gift limits.
Can you edit out the @ on your reply. I changed my screen name after the first post when I realized my last name was in it.
Absolutely. I have removed the information in the last post as requested.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
smlucio
Level 1
guri0121
Level 1
knownoise
Returning Member
mpiseter
Level 1
obeteta
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.