rental - part

[oceanlovin'ea]

I have a client (actually a neighbor) who owns the house next door. She moved several years ago a couple of miles away.
She rents the house to her daughter and various roommates. in 2010 most of the year her daughter lived in the house and her niece who was in the area going to school. Niece paid nothing, did nothing around the house, nothing. Daughter paid rent part of the year. She is a special ed teacher and is wanting to go back to school full time to get masters degree. Mom told her if she made 3 car payments a month she didn't have to pay rent. She has to get car paid off so she doesn't have the bill when she goes back to school.
About Sept or Oct another girl moved in and she pays $300 per month rent. It is a small house and she could probably get $500 for it if she advertised it.
Would you consider this part personal and part rental? Especially for the time when she was getting rent?
No one has signed lease.

Linda, EA

[oceanlovin'ea]

moving up

Just moving this up so maybe someone will have some ideas. I am inclined not to count it this year or at least only the months toward the end of the year.
I would just like to be able to say some others agreed or disagreed with me. She will do whatever I say is right.

Linda, EA

[Gary2]

How about part personal and part not-for-profit rental?

[oceanlovin'ea]

She would like it to be a for profit rental or she would just like to sell it. It is costing her a lot of money each year. It has never been counted as rental but now that niece has left and a real renter has moved in she was wondering if that would work.

Until time real renter moved in it was personal. After that it could be part personal and part rental just based on the months at the end of the year.

I don't know......my mind is like mud right now.

Linda, EA