Rental property with child as tenant

[ScottW]

Taxpayer and wife own a rental property and their child lives in it. The child pays the $2k/month mortgage (which includes the RE taxes).

Is there any way to set things up so the taxpayer doesn't have to report the rental income (gift to/from the child, etc)?

Thanks

[TAXNJ]

Is there any way to set things up so the taxpayer doesn't have to report the rental income (gift to/from the child, etc)?

Thanks

See “What is considered a gift.”

https://www.irs.gov/businesses/small...-on-gift-taxes

[New York Enrolled Agent]

Taxpayer and wife own a rental property and their child lives in it. The child pays the $2k/month mortgage (which includes the RE taxes).

Is there any way to set things up so the taxpayer doesn't have to report the rental income (gift to/from the child, etc)?

Thanks

The Supreme Court in Duberstein said a gift ".. proceeds from a detached and disinterested generosity...". IMO, your post makes that test a hard sell.

[ScottW]

Good info on the gifts. Guess the parents should report the rental income on sch E, offset by mortgage interest, RE taxes, depr etc.

Thanks!

[TaxGuyBill]

Good info on the gifts. Guess the parents should report the rental income on sch E, offset by mortgage interest, RE taxes, depr etc.

Thanks!

Is it being rented at Fair Rental Value? If not, it does not go on Schedule E. The income would be "other income", and the mortgage interest and real estate tax would be on Schedule A.

[FEDUKE404]

Is it being rented at Fair Rental Value? If not, it does not go on Schedule E. The income would be "other income", and the mortgage interest and real estate tax would be on Schedule A.

A-MEN to that !!