Question

Arizona Rental Property

Forum|Forum|3 years ago
November 16, 2022
1 reply
0 views

I own a rental property in Arizona. This year I rented the house to one of my children. Can I still use claim it as a business in my Federal Tax return and Arizona Tax Return. There is a special rule for when rental property is rented to family members that I do not understand

JBedford

Hi, @pajear2718 , thanks for the question! As is so often the case, the answer is, "It depends." 😁 The main questions that must be answered are: are they using the home as their primary residence, and are you charging them "fair-market" rent? You may need to do some Internet research on other rentals in the area to help you determine that. If you are, then you can claim it like any other rental. But if you're giving them a significant "break" on the rent, then it's considered personal-use property, not a rental. IRS Publication 527 goes into more detail, on page 18.

Hope this helps!

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"