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I have bought a property in the college town where my daughter is now a
sophomore. She'll will be living in it (let's say free) along with 3 other
renters.

I will report the rental income of the three, and it looks like I should be
able to take 3/4 of the expenses on Rental Schedule E, and the remainder of
the mortgage and property tax on Schedule A. Is this correct? Are there any
pitfalls I should look out for?

Thanks to all,

Steve


Shrewd move you made. Friend of mine did this in the 60s and had his 3 kids live consecutively in the house. When he sold the capital gain repaid all the tuition for all of them and the rent covered the kid's living costs.

Your assumptions are correct. Don't forget depreciation. Also you can deduct travel and lodging and dining cost to go visit, (inspecting and/or repairing your rental property).

Read the insurance policy CAREFULLY as to number of renters allowed, coverage for your daught's and rented contents, tie-in to your homeowners. You can probably get a secondary residence homeowners since your family lives there.
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