Question About Renting to a Relative

[Tim L.]

I'm considering purchasing a home for my mother to live in, since she is currently renting and unable to purchase a home for herself. I will charge her fair market rent, but I want to make sure that I am able to claim it as a rental property, and get all the tax advantages (depreciation). The problem is, I have been giving her money every month to help her pay her current rent, and I want to continue to help her.

I'm thinking of including her in my business, as a bookkeeper, and pay her a modest wage similar or greater to what I've been currently giving her. This would also help alleviate time for me to focus more on growing my business, so it would be a win-win for everyone.

Is this a sound strategy tax-wise? I would love to hear from anyone with experience in this.