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I just bought a rental property two weeks ago and plan to let my children live there. I have a mortgage that they will pay me for to cover the expense. At some point, they will purchase the home. For tax purposes, is this considered rental property and can I still claim the mortgage deduction?
ANSWER
Expert Mark Anderson's Answer:
Yes. The IRS may look at it as a related party transaction. I would make sure you document the rental transaction by having a written lease agreement and charging rent this the going rate in the area. I hope this answers your question.
