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Updated over 4 years ago on . Most recent reply

User Stats

6
Posts
1
Votes
Sam Y.
  • Los Angeles, CA
1
Votes |
6
Posts

below market rent to family member in paid off property- yes dumb

Sam Y.
  • Los Angeles, CA
Posted

Hi, here is my dilemma.  

i have a paid off property that i've been "renting" to a family member since 2014.  file a schedule e every year and take depreciation but thinking that may be wrong.  since the property is paid off, i only pay for and deduct the property tax, hoa  and depreciation.

can i- claim the property as a second home instead, stop taking depreciation and stop reporting the below market rent as income?  i don't have a mortgage and family member does own minor repairs.  

i want to sell the property in the near future- 1 to 4 years.  i'd rather stop taking the yearly depreciation and avoid the depreciation recapture.

i have a regular w-2 job and another triplex that i do manage and rent at market rate.

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