What should I do.
I own "rental". Purchased for daughter after her divorce. She pays no rent. I pay all taxes and maintenance. My income is upper 6 figures so I can't take a current loss (depreciation) even if was receiving rent. Basically capital asset to me. Looking for ideas on "how to own and operate" that has ..some....current benefit.
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You do NOT have a rental property ... you have a second home where family lives. All you can do is deduct RE taxes and mortgage interest on the Sch A if you itemize deductions ... nothing more ... you have nothing to "operate" at this time.
You do NOT have a rental property ... you have a second home where family lives. All you can do is deduct RE taxes and mortgage interest on the Sch A if you itemize deductions ... nothing more ... you have nothing to "operate" at this time.
What you describe is not a rental or any other form of business property, as you are not utilizing it in any way to produce income of any type. You own a second home, and that's it. Based on the information provided, nothing concerning this property is reported on SCH E or SCH C. The only deductions you "may" qualify for (depending on your income) are property taxes and mortgage insurance as a SCH A itemized deduction.
Should you actually start renting the property in the future, then you will convert it from personal use property to residential rental property. But with family living in the house, if you are not charging the FMRV then it's still personal use.
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