Renting home to parent at low cost
Hi All,
I recently purchase an investment property, but i rent it to my parent at lower price, not at a market rent value. My question is:
- Can i file my tax under a rental property, the reason is that i want to deduct the $ i spend on fixing the property.
- I was told by a friend that i can't because if i do, then my mom has to file a tax return because she is getting income by not paying full rent price. (She's on disability at the moment, her income is not taxable)
- I already file this year tax and file this property as a personal property.
- Which way is a better way to file the tax, as a rental property or as personal property. i know that i get tax break on the loan interest if i file under personal property. Has anyone ever face with this issue before?.
thanks in advance