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Visitor I

Rent second home to relative below market rate, is this income?

My brother and I co own a condo we inhereited - we pay the mortgage, HOA and Taxes from a joint account (belonging to my brother and I) - Our uncle lives there all year and gives us money monthly, well below market rate and pretty much just covers these costs. Is this Misc income and reportable? Or because it is personal use and "not for profit" is this not taxable?

1 Comment
TurboTax Specialist

Rent second home to relative below market rate, is this income?

The rental income is still reportable and if you are renting not for profit, you would record on line 21 of your 1040. The mortgage interest, property taxes would be deductible if you itemized your deductions on schedule A. Any other rental expenses would be claimed as miscellaneous itemized deductions on schedule A.

 

Residential Rental Property