Do I deduct rent if I am just paying my landlord back for helping me purchase the house?

Forum|Forum|3 years ago
January 31, 2023
2 replies
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My grandparents are my landlords and I pay them a set amount a month as a way of paying them back? We call this rent but I'm not sure if it is or not.

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xmasbaby0

Employee

Rent is not deductible on a federal tax return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Carl11_2

Employee

Sounds more like a mortgage payment to me of a seller financed property. The seller would be required to report the payments, or at least the "imputed interest" part of the payment. Legal advice from a local real estate attorney is highly recommended. Otherwise, both buyer and seller could find themselves in a legal quandary should either be audited for any reason.