second home for non-profit

[kgodino]

I have a second home that is paid off, my daughter lives there and pays the property taxes and insurance. how should I report this? I don't charge her any rent. I bought the house for her after I had sold a rental property that I had inherited.  I had to do a 1031 exchange. Now I'd like to convert it to her name and mine.  I need to know what I should claimand what forms to fill out for my 2024 taxes and how I can convert it?

[jtax]

I think you should seek professional advice. This is more involved here with significant consequences than makes sense for a volunteer Internet forum. 

For example:

1. adding your daughter's name to the property is likely a gift and will probably require filing a gift tax return, though no gift tax will probably be due unless you have previously gifted many millions of dollars. 
2. adding your daughter's name to the property means her creditors might have access to the property. also your daughter could cause the property to be sold at anytime (co-owners have a "partition" and sale right in most cases.)
3. I think we may be missing some details. I don't understand how you could go a 1031 exchange to a personal use property (i.e. no rent charged much less fair-market rental). See for example this article describing how to convert a 1031 to personal use. It involves renting the property at fair market rental value for certain periods of time (~ 2 years).  If you met those time conditions described below, no problem, if not you need to figure out what to do about the 1031.
   • https://legal1031.com/exchange_resources/converting-1031-property-into-a-property-for-personal-use/
   • https://www.irs.gov/pub/irs-drop/rp-08-16.pdf

Given these issues, I think you would be best off discussing the titling/gifting options with an estate planning attorney and the 1031 issues with a tax attorney, CPA, or enrolled agent who specializes in 1031 exchanges.