Hi, I have seen questions similar to the one I am about to ask, but nobody seems to be in the same situation.

My brother (27) and I (23) purchased a house for our mother to live in so that she can save money. She only makes about $12,000/yr.

We would like to be able to get some sort of tax break for this expense (write off lost rental income, or claim our mother as a dependent), but I cannot seem to find any tax rules related to this situation. She exceeds the income limit to be claimed as a dependent, but my brother and I cover more than 60% of her yearly expenses (housing, car payment, car insurance, car/house maintenance, and more).

I would appriciate any help that could help me save money for being such a good son.:)

Thank you,

Jace

Jace:

The IRS takes a special interest in business conducted between relatives and makes sure that losses in such business relationships are legitimate. If you do not treat your mother like a stranger, have her sign a lease and collect rent, you CANNOT legally deduct the rental loss.

Given the ages you quoted for yourself and your brother, I assume that your mother is in her late 50s/early 60s and is NOT on Social Security. However, if she is earning only $12,000 a year, she is making less than minimum wage if she is working full time. What exactly does she do to earn such a pitiful wage?

If you email me at [email protected] with more details, perhaps I can give a more insightful analysis.

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Originally Posted by jkgerock

Hi, I have seen questions similar to the one I am about to ask, but nobody seems to be in the same situation.

My brother (27) and I (23) purchased a house for our mother to live in so that she can save money. She only makes about $12,000/yr.....

I would appriciate any help that could help me save money for being such a good son.:)

Thank you,
Jace

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You mother can not be your dependent as her income is more than $3,500. You can not take any deduction for lost rent or other expenses.