Los Angeles, CA
I own a home that I’ve lived in as my primary residence for a year. My parents and my brother live with me.
I’m planning to move out and rent an apartment nearby to have my own space. My parents and my brother will continue to live in the house and make the necessary mortgage and property tax payments, but there won’t be a lease and I won’t be making a profit. I plan on visiting, but not exactly staying overnight (other than maybe major holidays).
Would this home be considered a second home? Given that lenders and the irs have different definitions for second homes, what would my situation be classified for each?
If not a second home, what arrangements do I have to make in order for it to be considered a second home given that there won’t be a lease and I won’t make a profit?
The reason I don’t want to rent it out to my family, is because I don’t want the rent to be counted as income, given that I’d “rent” it to them for only the amount that the mortgage and property taxes add up to. With no profit at all, I’m confused as to how it would qualify as a rental.
Submitted July 25, 2021 at 10:51AM by b0302 https://ift.tt/3i2Zu3x
