I own a house in Penna. which I rent, essentially at zero cost, to a family member. They live in the house and maintain the property. How do I handle this on my return?

fraknbeth · ‎June 1, 2019

TomD8 · ‎June 1, 2019

If you're able to itemize, you can deduct the mortgage interest and property taxes on the second home on your Schedule A, subject to IRS limitations on the amount.

The house is not considered a rental for tax purposes. When you rent to a family member at below fair rental value, that is considered personal use of a home.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

fraknbeth · ‎June 1, 2019

can I treat this as a fair market rental (at a monthly rent of $15K/12) with a $15K gift back to my relative?

TomD8 · ‎June 1, 2019

Your tax return should reflect the facts of the situation.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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I own a house in Penna. which I rent, essentially at zero cost, to a family member. They live in the house and maintain the property. How do I handle this on my return?