Just wanting to know if I can charge less rent then market value or do I have to pay income tax on the amount of rent I should have charged? I don't care about making a 'loss' on the property, im only charging family cost amount and want it to be like the property doesn't exist for me as they are going to buy it for the loan amount in the next year or two.
Hello there @Cattee83
The rental amount you charge for your property is your choice. You will not be expected to report and pay tax on amounts you did not receive. The issue that arises with this situation is your deductions could be limited to the amount of rent you receive. We have a ruling you might be interested in. Paragraph 13 - 16 is about renting to family.
Hello there @Cattee83
The rental amount you charge for your property is your choice. You will not be expected to report and pay tax on amounts you did not receive. The issue that arises with this situation is your deductions could be limited to the amount of rent you receive. We have a ruling you might be interested in. Paragraph 13 - 16 is about renting to family.
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