Hello - I have a question on the tax implications of rental income from a sibling who is a part owner of the property (I know this sounds strange).
I purchased a condo with my sister a couple of years ago and I am the sole person on the mortgage (although her name is included on the deed for the property). While I have been using the condo as a primary residence and taking mortgage deductions, I have since gotten married and want to potentially purchase a new home with my wife. If and when that happens, my sister will be moving into the condo. I am wondering whether I can "lease" her the apartment while receiving rental income and continuing to deduct the mortgage interest (and also deducting the mortgage interest of my new primary residence). Are there any complications to this since she technically is an owner of the property? And would I be able to charge her a below market rent so that I don't recognize any net income (i.e. charge her the amount of the mortgage interest as rent)?
Thanks in advance.
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