<davidegriffin[at]gmail.com> wrote:

- quote -

What you consider it in the long run is irrelevant. In 2007 it wasn't a
rental because it wasn't available for rental.

- quote -

No, and you can't deduct any rental expenses. You can deduct the real
estate tax on Schedule A and, if you don't own more than two homes, mortgage
interest on it as a second home.

If you place it back in rental service you pick up where you left off on
depreciation. See Publications 527 and 936.
--
Phil Marti
Clarksburg, MD

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davidegriffin[at]gmail.com wrote:

- quote -

I am unable to back this up, my google powers failing me.
I understand that there is an imputed rent, similar to if you tried to
lend money to a child interest-free. There is a market rent you must
take as income, and if you are gifting the value back to them, it's a
gift subject to the gift limits ($12K/person). So if it's you and your
wife, and daughter and son in law, there's $48K total you may gift. But
the rent must be claimed as income. I may be mistaken, but this would
stand to a reasonable conclusion as "there ain't no such thing as a free
lunch".

Joe (hopeful someone will cite a reg or pub to contradict or corroborate)

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Hello, Here is question on residential rental property that the IRS
publications don't seem to address. We have own a rental property for
the past five years. We had tenants for all that time, collected
rent, and handled it as a rental property on our federal return.
However, for 2007, one of our daughters and her husband have lived in
it for the entire year. We have not charged them rent. Over the long
term, we still consider this property a rental. My daughter may live
it in one more year, but after that we may rent it again (or possibly
sell it). So, for 2007, can we treat this property as a rental? If
so, can we deduct all the usual rental expenses -- maintenance,
repairs, etc. -- or only the depreciation? Thanks for your advice on
this!

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >