Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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

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,


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.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.