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    recline's Avatar
    recline Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Jul 26, 2008, 11:00 AM
    Leasing Property to a Relative
    Can you lease a home you purchased to a relative and still claim all tax breaks? Someone told me you cannot do this if it is your relative . They would be paying the rent that would cover the taxes , payment and swim club membership. Also, would be resposible for all repairs. Would also, have to have renters insurance on their contents.
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #2

    Jul 26, 2008, 11:11 AM
    I believe most 'homestead' exemptions (tax breaks) require you to reside in the home, but I may be wrong. What state?
    recline's Avatar
    recline Posts: 5, Reputation: 1
    New Member
    		  
    #3

    Jul 26, 2008, 11:13 AM
    Missouri
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #4

    Jul 26, 2008, 11:27 AM
    You may be asking about income tax deductions, etc.; "Rental activities include all
    activities in which a customer pays for the use of tangible property
    (real estate or personal property). We are only concerned with the
    rental of real estate. Renting property is a passive activity but there
    are activities that are not treated as "rentals"." Lots of info here: Rental Property - Tax Information
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #5

    Jul 26, 2008, 02:40 PM
    You can not claim this as your resident and deduct those things for your own home. You can deduct those things off the rental money. The rental money will be considered income
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