Renting from yourself

[Terence Purcell]

With the recent increases to standard deductions - the taxation benefits of owning your own home have been reduced.

Being a landlord continues to be tax effective.

I have a family member who is looking to buy for themselves personally - but I am helping them with down payment. It seems better to buy the property and have them rent - for depreciation, repairs as deductible etc. Assuming they are ok with this - since they don’t want the full responsibility of home ownership.

So my question - does it make sense and is it possible to buy as a partnership (or just themselves and myself as joint owners) - and have them rent it from both of us? How does tax deductibility apply then to both of us? Given they would live there and rent - but they are part owner???

Note - I do understand the impacts to capital gains and depreciation recapture if this is an investment property rather than own home.

Thank you in advance.