Should this house be taxed as a rental property?

[Katie Dutton]

So at the beginning of the year I moved out my home and went to a different city for work. My parents decided they wanted to move into it and are now renting it from me.

My question is would it be an advantage to declare this as a rental for tax purposes? Or just consider it a second home and my parents rent money be a gift. I already itemize and have a significant taxable income so I'm thinking it might be better to treat this as a rental. It may be worth mentioning I have to add on a retaining wall to the property this year that will cost about $60k. Thoughts?

I did call a tax advisor but they wouldn't really work with me until closer to tax time, I want to get a headstart on the process. Thank you!