When a real estate property is rented to a related person, does the rental have to be an "arm's length" transaction, where the rent charged is an amount which would be charged to an unrelated person? Is a writeen rental agreement required?
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From IRS website Topic 415
I believe that item 2 covers your situation:
A day of personal use of a dwelling unit is any day that it is used by:
1. You or any other person who has an interest in it, unless you rent your interest to another owner as his or her main home under a shared equity financing agreement;
2. A member of your family or of a family of any other person who has an interest in it, unless the family member uses it as his or her main home and pays a fair rental price;
3. Anyone under an agreement that lets you use some other dwelling unit; or
4. Anyone at less than fair rental price.
LTOnly in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".
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