Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 5 years ago on . Most recent reply

User Stats

6
Posts
1
Votes
Sam Y.
  • Los Angeles, CA
1
Votes |
6
Posts

below market rent to family member in paid off property- yes dumb

Sam Y.
  • Los Angeles, CA
Posted

Hi, here is my dilemma.  

i have a paid off property that i've been "renting" to a family member since 2014.  file a schedule e every year and take depreciation but thinking that may be wrong.  since the property is paid off, i only pay for and deduct the property tax, hoa  and depreciation.

can i- claim the property as a second home instead, stop taking depreciation and stop reporting the below market rent as income?  i don't have a mortgage and family member does own minor repairs.  

i want to sell the property in the near future- 1 to 4 years.  i'd rather stop taking the yearly depreciation and avoid the depreciation recapture.

i have a regular w-2 job and another triplex that i do manage and rent at market rate.

Loading replies...