darcijj wrote:

- quote -

This merely defines how FRV (fair rental value) is
determined.

- quote -

No, only that IF you rent it for less than FRV, then your
deductions are limited.

- quote -

looks like you can deduct the real estate taxes at least.

ChEAr$,
Harlan Lunsford, EA n LA

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darcijj <darcijj[at]gmail.com> wrote:

- quote -

Renting to a Related Party at less than Fair Market rental
value means you cannot deduct more than your income.

In such a case your income goes on Form 1040 Line 21 and
your expenses, not exceeding income, goes on Schedule A Line
22, subject to reduction by 2% of AGI.

--

Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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"darcijj" <darcijj[at]gmail.com> wrote:

- quote -

You should look into the vacation home rules.
Depending on your facts and circumstances, it could be
considered a 2nd personal residence.

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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I own a duplex and rent the other side out to my parents.
When my mom retired, I lowered the rent to $150.00 a month.
Since I have a HUD lien on the house the maximum rent i
would charge a stranger is $350.00. So it is fair to say it
is under fair market value. This is what the IRS says:

Fair rental price. A fair rental price for your property
generally is the amount of rent that a person who is not
related to you would be willing to pay.

Are they saying family members are different than general
public and I can deduct expenes even though it is below fair
market rent?

How do I treat this on my return? What do I declare and
what can I deduct, i.e. taxes, interest. etc. I was
deducting half of those expenses prior to this year.

Any clarification on this would be appreciated.

Thanks!

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