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herkerts
New Member

If I am renting a house to my daughter, at a net loss for me, do I qualify for Safe Harbor as a trade or business? I do almost all of the maintenance and upkeep myself.

 
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1 Reply
Vanessa A
Employee Tax Expert

If I am renting a house to my daughter, at a net loss for me, do I qualify for Safe Harbor as a trade or business? I do almost all of the maintenance and upkeep myself.

No.  If you are renting the house to your daughter at less than Fair Market Rental Value, this is considered personal use of the property and not a rental property, so you cannot deduct any expenses for this property.  It is basically treated the same as your own home would be treated. 

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