Rental Expenses

[Terry D EA]

Okay I know I am tired as well as sick and I should know this answer but. Client has rental property that he moved his mother into. Mom does not pay rent, I say no expense or depreciation deductions as the property is not available for rent and currently no income. Correct?

[Jack from Ohio]

Okay I know I am tired as well as sick and I should know this answer but. Client has rental property that he moved his mother into. Mom does not pay rent, I say no expense or depreciation deductions as the property is not available for rent and currently no income. Correct?

Correct. Deductions can only be up to the amount of income when rented to a related person. No income = no deduction.

[kcjenkins]

Terry, if you expect him to return it to rental later, consider keeping the 4562, just reduce the business percentage to 0, and let it stay in the return like that until he returns it to active rental.

[Pacun]

Deduct RE Taxes and Mortgage interest on Sch A until rented.

[jklcpa]

Terry, any days that a property is rented to family for less than fair market value of rent are considered days of personal use. Enter the days of use properly and you should arrive at the correct result.

[Terry D EA]

Thanks to all who responded. I planned on keeping the 4562 cause he very well may return this to rental. Judy I will check with him on the fair rental days. I knew that as well and now after some rest I can think clearer. Come on April 15th.

[michaelmars]

its not rental anymore, it is the taxpayers second home that his mom lives in.

[SCL]

its not rental anymore, it is the taxpayers second home that his mom lives in.

!!!!