Originally Posted by bukaspop
In addition to my primary residence, I own a condo that my disabled son rented for three years. For the past two years he has been unable to pay rent. Can I claim this condo as a second home and deduct the interest and taxes?
then,aslongas the fair rental value if the condo exceeds $14k for 2013, you MAY need to file gift tax return form 709 with the irs as your son lives in at no cost. The difference between what your son must actually pay and what you need to receive at fair rental rate is a gift to him from you.In general, parents should charge their adult children rent if an adult child lives in the parents' home or in other property the parents own. No, you can not. In order to deduct rental property expenses in excess of income you need to charge a fair market rent on the condo. as your rental income is $0, you can’t deduct expenses: as you are not charging rent, it is not a rental property.yur s child would have to be paying fair market value rent in order to take other deductions.
since this is yoursecond home that you own you can still deduct the mortgage interest on Sch A of 1040. You can also deduct the property taxes on any number of homes that you own on Sch A of aslongas you itemize deductions on yur return. Repairs and maintenance are not deductible. If m not, then yu can’t deduct them.
Note; in general, it's perfectly legitimate to rent to your child but any time that there is any question about this being an arms length transaction you need to keep records on what similar properties rent for on the open market to prove that you are collecting a market-based rent. Any time you rent for less than market rent, whether it's to a family member or anyone else, your expenses are limited to the revenue that you received.