Tax Write-off Condo Rental Property-Daughter Lives There

[beagle bev]

My daughter is living in a condo that my husband and I bought as a rental property. The condo is in the same town as the college she attends. We decided to let her live there rather than pay costly rent for an apartment for her to live in. We receive $.00 rent. Should we show that she pays some amount of rent. We pay for all the expenses, repair, utilities, phone, etc. Can we still right off all the expenses. Do we need to have her sign a lease? We want to be able to write off all expenses, to include taxes, insurance, etc.
Please advise.

 

[peter]

NO you cant the IRS will not look kindly on you if there is NO INCOME reported.

So either she pays rent or you dont deduct anything.

You can charge her below market rent say 1/2 to 2/3 of the going market, but at zero it really is a GIFT,

so it woudldnt be deductable.