I bought a house for my daughter last year and she and her children live there and pay the monthly mortgage payment. I would say it's FMV - maybe a little less. She pays all the upkeep, utilities and I pay the homeowners insurance. I also paid the down payment along with closing costs and points. Should I claim it as rent on my taxes?

asked 06 Mar '13, 13:41

dmcknatt's gravatar image

accept rate: 0%

I think you are poorly planning your circumstances. If you are liable for the mortgage, then you should be paying it. Why complicate the situation by having someone that is not responsible for the mortgage to pay it?

The better way to structure the arrangement is to pay for the mortgage, and claim the mortgage interest deduction. If there are other expenses that do not affect your tax return, then have your daughter pay them. But it seems to me that this is a second home for you for tax purposes. Whether or not there is any taxable income left over from your arrangement depends upon how much you charge her, and how much each of the expenses are. But since there is not information about how much each of these expenses are, we can't provide further useful advice.


answered 14 Mar '13, 02:26

Bill-EA's gravatar image

accept rate: 3%

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Asked: 06 Mar '13, 13:41

Seen: 300 times

Last updated: 14 Mar '13, 02:26

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