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Regarding your rental income -
Unless you consider this monthly payment amount as a gift from your sister (the annual gift exclusion amount allows anyone to gift another person up to $14,000 in a single year tax-free), you will need to recognize this income as other income on your tax return (even though you will not be able to claim any rental expenses against this income.)
If your rental income is less than the FMV of rent that should be charged for the property (based on various factors including location and house size) or if you are collecting rent on personal use property (like your car), you will need to recognize this income as other income on your tax return (even though you will not be able to claim any rental expenses against this income.) This type of rental income will be reported on line 21 of your 1040.
To enter this as other income under other miscellaneous income in TurboTax Online and Desktop (for TurboTax Online sign-in, click Here:(
Regarding your rental expenses -
Since you are renting for less than the FMV, you will not be able to claim any rental expenses under the rental section. However, you will be able to claim any mortgage interest, mortgage insurance and property taxes on this rental property as though it were a second home.
To enter your Mortgage Interest and insurance in TurboTax Online (for TurboTax Online sign-in, click Here , then select "Take Me to My Return") or Desktop, please follow these steps:
To enter your Property Taxes in TurboTax Online or Desktop, please follow these steps:
Regarding your rental income -
Unless you consider this monthly payment amount as a gift from your sister (the annual gift exclusion amount allows anyone to gift another person up to $14,000 in a single year tax-free), you will need to recognize this income as other income on your tax return (even though you will not be able to claim any rental expenses against this income.)
If your rental income is less than the FMV of rent that should be charged for the property (based on various factors including location and house size) or if you are collecting rent on personal use property (like your car), you will need to recognize this income as other income on your tax return (even though you will not be able to claim any rental expenses against this income.) This type of rental income will be reported on line 21 of your 1040.
To enter this as other income under other miscellaneous income in TurboTax Online and Desktop (for TurboTax Online sign-in, click Here:(
Regarding your rental expenses -
Since you are renting for less than the FMV, you will not be able to claim any rental expenses under the rental section. However, you will be able to claim any mortgage interest, mortgage insurance and property taxes on this rental property as though it were a second home.
To enter your Mortgage Interest and insurance in TurboTax Online (for TurboTax Online sign-in, click Here , then select "Take Me to My Return") or Desktop, please follow these steps:
To enter your Property Taxes in TurboTax Online or Desktop, please follow these steps:
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