I have just inherited a property that I am going to rent out eventually, but it needs major repairs.
My son has offered to live in the house paying half the market rental so that the property is occupied whilst we are fixing the place up, I really don't want to leave it empty for fear of breakin or vandalism, and this senario suits us both, he only wants a short term rental as well.
Do I have to have a rental aggreement with him to be able to deduct the repairs as deductions on my tax?
Repairs that need to be done are leaking roof which has caused paint damage, so a room needs to be repainted.
Ceiling lights are broken and need to be replaced.
Stove needs replacing (this may be a capital cost)
Carpet is ruined and needs to be replaced.
any advice appreciated.
My son has offered to live in the house paying half the market rental so that the property is occupied whilst we are fixing the place up, I really don't want to leave it empty for fear of breakin or vandalism, and this senario suits us both, he only wants a short term rental as well.
Do I have to have a rental aggreement with him to be able to deduct the repairs as deductions on my tax?
Repairs that need to be done are leaking roof which has caused paint damage, so a room needs to be repainted.
Ceiling lights are broken and need to be replaced.
Stove needs replacing (this may be a capital cost)
Carpet is ruined and needs to be replaced.
any advice appreciated.