Rent is Less than the Mortgage

Forum|Forum|1 year ago
January 6, 2025
2 replies
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My daughter's family is living in my home and paying rent. she is paying $2300 a month but the mortgage (minus taxes and insurance) is $2365.58 a month. Can i claim the the $65.58 that I am paying over the $2300 rent as an expense? in short, i am paying more for my mortgage than i am receiving in rent so the question is, is the over amount i am paying a tax deductable expense?

xmasbaby0

Employee

When you say your daughter is living in "my home"---are you referring to a home in which all of you live together, or do you own a house that your daughter is living in as a tenant--and you live elsewhere? Please clarify.

**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.**

AmeliesUncle

You first need to determine a couple of things: (1) Are they paying you Fair Market Rent (or at least pretty close to it) and (2) Is this a for-profit endeavor (at first glance, it seems like your total expenses (after you add real estate tax, insurance, repairs, etc.) may be much larger than your rental income, so it may be a not-for-profit rental)?

As a side note, your mortgage payment doesn't directly come into play. It would be (1) mortgage interest and (2) depreciation. But that can't be addressed until we know the answers about Fair Market Rent and if it is a for-profit rental (and the answer if they are living in the home by themselves or if they are living WITH you or other people in the home).