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Ask Barrister Your Own Question
Barrister
Barrister, Attorney
Category: Legal
Satisfied Customers: 37003
Experience:  16 yrs practice, Civil, Criminal, Domestic, Realtor, Landlord 26 yrs
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We have an LLC, which hold a few real-estate properties used

Customer Question

We have an LLC, which hold a few real-estate properties used for rentals. One property does not collect rent as my parents live there. Last year, we couldn't write anything off against this house as they said it was our home, not a rental. If y parents pay us a nominal sum for rent can we then call it a rental and deduct repairs, maintenance items etc?
Submitted: 1 year ago.
Category: Legal
Expert:  Barrister replied 1 year ago.
Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply,but rest assured, I am working on your question... If y parents pay us a nominal sum for rent can we then call it a rental and deduct repairs, maintenance items etc?.No, you would have to charge them fair market rent for the property and have an actual lease contract with them in order to be able to legally consider the property a rental as far as the IRS is concerned..However, there is nothing that would prevent you from accepting the rent and then gifting it back to them if you choose to do so. But you have to maintain appearances of a legal landlord/tenant relationship...thanksBarrister