If its in your name and paid off, what difference does it make?

If this is any type of investment property that you plan to write off expenses for tax purposes, you must have a paper trail with a proper lease, and rent it to her at market value.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have an Airbnb which stayed empty most days, our daughter was paying a big portion of her income on her rental so we are letting her move in our unit to save money and have a nicer place. How would you handle rental agreement, verbal or written?

Absolutely written, just like for anyone else.

NP. Why? I'm just curious.

DP. For tax reasons. If you’re taking rent you need to claim it and you need a paper trail.

Also for legal liability reasons.

She can pay utilities and insurance. Unless she is undergoing a financial or mental crises, she must have some responsibility.

for accountability purposes, I would do a written agreement for both of us and have her pay some rent.

You can later use that money for her new home/place when she gets one.

You're not talking about letting her live "in your home." You're talking about her making use of your rental property.

We recently bought a place in a very nice suburb in the DMV and rented it to our kid and their spouse. We rent it to them for full fair market value and have a standard written lease. That way we can write off all of the expenses associated with the house against the rent and avoid income taxes.

As a previous poster said, unless you're charging your daughter full market rent, anything that she DOES pay you for rent is income that you are taxed on and you can't write off expenses.

If you don't plan on charging full market rent and treating your child like a non-family member, then I wouldn't put anything in writing at all. You're better off not doing it.

Anonymous wrote:We have an Airbnb which stayed empty most days, our daughter was paying a big portion of her income on her rental so we are letting her move in our unit to save money and have a nicer place. How would you handle rental agreement, verbal or written?

Just FYI, if you rent to a family member under FMR your property becomes personal use for IRS purposes. Not sure if this matters, but it would prevent you from depreciating costs.

Anonymous wrote:

Anonymous wrote:Its a small paid off unit.

Then I’d ask her to cover utilities. It doesn’t hurt to help your kid.

+1. I would draft an agreement that she pays utilities and is responsible for keeping the unit clean, taking out the trash bins weekly, watering the plants, etc. Think about whether you are ok with guests and for how long.

Anonymous wrote:Its a small paid off unit.

Then I’d ask her to cover utilities. It doesn’t hurt to help your kid.

Please disregard my last post. I put it on the wrong thread. Sorry!!

This would be a great thread to move to the adult children forum. Hopefully that will prevent parents of twelve year olds from posting!

30% of income no agreemen

Anonymous wrote:None, she's your child.

+1