Hi, my mother-in-law
owns a home that she would like to rent out. She lives out of the country, so has asked me to rent and manage the property
. She's (lucky for me!) willing to give me and my wife half or more of the rent as "property mgmt fees".
My question is, can this rent be written as payable to me from the tenant, and considered part of my passive income
(as tho I DO own the property)? I would be doing the same type of "property management" that I would do on my own property - the difference is I don't formally own this one. The benefit
of passive is I can write against some passive losses I have in my own properties.
If this can't be considered passive income, are there creative ways to do this, knowing my mother in law is very flexible? For example, creating an LLC
with me and my mom and putting the property in? Could I then flow distributions
(from rent) to me, as passive income?
thanks for any creative help!