Hopefully someone more versed in this area can chime in. Lets say I buy a two bedroom condo for my child to live in while at school.
Scenario 1:The roommate pays less than mkt value rent, my child pays nothing. I am assuming it is no longer a rental property, its just a second home, and I just claim those rent payments as miscellaneous income?
Scenario 2: I have my child pay mkt value rent, and the roommate pays mkt value rent. I believe it is a full fledge rental at that point, and I can take all the normal deductions, expenses etc. Can I give my child the rent payment since it would be under the allowable gift limit of 14,000?