Posted by Edwin on May 07, 2010 at 14:58:54:
Why don’t you want to make it a rental property? Sorry, but this is a question for a CPA, I’m afraid. I seriously doubt the IRS is going to allow you to deduct the taxes and interest while reporting no income, especially if they know your mother is living there and depositing her “rent” money into 529 accounts. Nice try, but it seems a little too creative and I’m sure there’s a snag somewhere that would prohibit it.
Renting to family - Posted by Buddy
Posted by Buddy on March 12, 2010 at 22:58:36:
I recently purchased a home for my mother. The house and mortgage is in my name but she currently pays me $860/month for the mortgage. Since she is paying me for the mortgage I should claim this as rental income. I would prefer not make this a rental property but I would till like to be able to deduct the mortgage interest and property taxes on my tax returns. Rather than pay me for the mortgage, I have asked her to set up 529 college savings plans for my 2 children and deposit the money there instead. Does this sound like a good idea?
Am I breaking any rules here?