Is my home considered rental income or a 2d home?

Forum|Forum|1 year ago
February 23, 2025
1 reply
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So my adult daughter and her spouse are paying the mortgage on my home because we had to leave the state for my husband to care for his aging parents. We bought a home in that state. My daughter is only paying the mortgage. All other expenses such as utilities, insurance, home repairs, property taxes are covered by me and my husband. We have updated aging appliances, HVAC, countertops prior to leaving and then had to unexpectedly leave. I am super confused how to approach this as I am not actually receiving any rental income and we are paying out of our pocket due to the costs of housing being so high we don't want to displace our daughter and her family.

PatriciaV

Employee

If you are not receiving fair market rent for your property, then the IRS considers this to be a second home. As such, you can include mortgage interest and property taxes in your itemized deductions. No other expenses qualify to reduce your taxable income.

Use this link to Lookup Fair Market Rent

ref: IRS Pub 527 Not Rented for Profit

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