It seems like a great idea. A financially stable person wants to help out a struggling family member by offering to rent their property at a bargain rate. Generous, yes. But if you are unaware of the tax consequences, you could find yourself being taxed on the rental income yet having any rental expenses disallowed.
Today you can find me at Forbes sharing the rules you need to be aware of before renting a home to a relative.
The IRS requires that a taxpayer’s refund be used first to offset any outstanding federal tax debt before it can be used to pay offset or applied as a credit on a future tax period. Unfortunately, TIGTA found that isn’t happening.
Today you can find me on Tax Insights sharing TIGTA’s findings.