Skylane, thank you for your assistance.  I hope this gives you all the detail you need. Client never intended to keep or rent long term.  The client was married in May of 2017 and moved into wife's house.  The brother lived in the house to save money to follow through with his plan to move out of state.  He set a date to move in early 2018 and the house was put on the market and sold quickly for a gain. If it is shown as a second home, there would be no depreciation and the income received from the brother for "rent" that was used to pay the mortgage, taxes, insurance, and HOA would have to be shown as income? If this is not a rental, there would be no capital gain since it would be client's residence for two of the last 5 years?  If considered a rental, the depreciation would have to be recaptured which would trigger some gain. We are having difficulty finding comps because so many of the places within a close distance are much smaller.  The smaller properties have been renting for about $1100/mo and the brother paid about $835 per month.