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What counts as rental for mortgage organiation?
Oct
29
2010
I’m going away for 6 months. My brother is going to live at my house.There is going to be no rental agreement and all of the bills etc will stay in my name.He will give me a little quantity towards the price of the home.Does this count as rental?
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Answer #1
Probably not, since it really is not an investment property and you might be dealing with family. The IRS looks at such details as not for profit and not an arm’s length transaction. If that you are concerned about the tax consequences then consult somebody for example an enrolled agent to advise you.
Nonetheless, you may well desire to advise your insurance agent that that you are leaving your house inside the hands of your brother while you’re temporarily gone for six months. Be sure all of that sort of thing is paid up. You also may perhaps have to clarify any issues of how much he can invest on essential repairs and if or if not you’ll reimburse him. Attempt to anticipate and do not assume anything since folks have differing expectations. You don’t wish to ruin your relationship over something as mundane as a plumbing bill.