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"rental"..... what to do with it.

treasur2
Level 3

TP is middle to upper 6 figure AGI. Has been a long time. TP is 72.

TP's daughter got divorced. The daughter is 52. Lower-income my area (maybe 30k).

TP purchased for cash home for her daughter to live in post-divorce. Rent-free. The daughter pays her own utilities. TP pays property taxes and maintenance. TP hopes that the daughter will put herself in a position to pay rent but only for normal maturity reasons. Would be nice to cover TP costs.

Basically, the "rental" is just a capital asset is what I have advised TP. I can't come up with any other scenario. Looking for ideas. I know this is.....not....an uncommon occurrence on a national basis. That is a real property being used by a family member rent-free for a "period of time".

Any ideas on how to "own it" other than mine is appreciated.

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5 Replies 5
TaxGuyBill
Level 15

It is a second home.  Mortgage interest and real estate tax may be deductible on Schedule A.

TaxGuyBill
Level 15

It is interesting how you posted this same question on the TurboTax forum, and said YOU were the one involved.  Are you a tax professional?

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/rental-what-should-i-...

 

treasur2
Level 3

No mortgage. She lives in full time. Thank you.

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abctax55
Level 15

@treasur2 

 Are you a tax professional? 

Could you please answer this question for all of us tax professionals who are devoting valuable time trying to assist our colleagues?

Former Chump..oops..AllStar...I used to be a people person, then people ruined it


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qbteachmt
Level 15

I disagree with all of your wording; you seem to want to bias a factual scenario. This someone owns a house as personal property; it's not a rental, just because it isn't their own primary residence. It's a personal asset. Nearly everything you stated has nothing to do with anything else. The IRS has no provision for writing off the cost of living or of taking care of friends or family as in this case.

 

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