I work & live in CA to take care of my elderly mother & rent out my townhome in CO under fair market value to save it for to live in. I pay $50 of mortgage. Any dedutions

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I can't raise the rent, or I'll lose my tenants.  I need this home to live in after my mother passes.  Are there any deductions since I not only rent under fair market value, but also pay $50 each month of the mortgage and $200 Home Owners Association fees, which pays the garbage and water for my tenants.  Are there any deductions?

[Anita01 · Accepted solution]

You can claim the rental income and then all your rental expenses.  Keep in mind that fair market rent is determined by your particular circumstances, not just the numbers.  Many people have exceptionally good tenants who take excellent care of the property and are charged lower rents in exchange or have long-term tenants they don't want to lose.  It's very expensive to lose a tenant and have to search for another, and especially difficult if you're not in the same state.If you have good reasons for the rent you charge and it's not a ridiculous disparity between that rent and fair market, you are allowed to consider it fair market in exchange for the benefits you receive from those particular tenants.

Mortgage payments are not deductible but the mortgage interest is.

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Thank you for your help