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Writing a house as a rental for my son

I purchased a house for my son & family to live in. On paper, the house had to be purchased as a rental, as I already had 2 other homes. My intention is for him to live in it until he can afford to take over the payments himself. Do I have to consider the mortgage payments as rent to myself, and do I have to claim that as income on my tax returns?


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24 helpful answers

Tracy L. Coenen is WalletPop's Tax Expert and Fraud Expert

 

 

You can make the house payments for now, and the only tax impact you may see is an additional deduction for the mortgage interest (if you qualify). Once your son starts paying, you do not necessarily have to claim the payments as rent. You may choose to do that if you want to claim the rent and then also take deductions like depreciation on the rental property. You are best off sitting down with a tax professional to discuss your options in detail.

Posted 2008-06-29T08:06:14Z

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