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M
m-hochman
March 14, 2025
Question

Renting below normal amount?

  • March 14, 2025
  • 1 reply
  • 0 views
What if I'm renting below comparable units?

    1 reply

    A
    AnnetteB6
    March 18, 2025

    Renting below comparable units can be a strategy to attract renters from the competition.  This should have no bearing on your tax return.  

     

    It is when you are renting below the market rate in your area such that your rental rate is discounted so deeply that you are not trying to make a profit that the IRS becomes concerned.  Doing this as a strategy to generate losses for your rental can become problematic if you do not generate a profit in at least 3 out of 5 years.

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