Family members as tenants

[Tom]

Hi,

In the situation where a family member is renting one of your IP's (all is above board) is it sufficient for you to declare the total fair market rent paid for the period or would a proof of a physical transfer of money i.e. bank statement need to be shown in an audit.

Thanks,
Tom

 

[summertime]

yes curious about this myself Tom.
Anyone?


Steve

 

[Jas]

In an audit sit. the more paperwork you can bring to prove your claim, the better off you are.

Jas

 

[magich2o]

Whilst bank statements etc would be helpful, it would also be useful to grab hold of a number of real estate rental valuations for your property as well as sample rentals of similar properties.

 

[Tom]

Thanks all,

Tom