Date: Sat, 17 Jun 2006
If I make a 1031 exchange and buy a condo that I rent to my son, what is the amount of rent I must charge?
Date: Fri, 07 Jul 2006
The rent has to be at fair market value based on similar properties in your area. The real estate agent who is helping you with the transaction may be able to help you compile information supporting the amount you charge. Make a written lease. (Why are you creating additional risk for a tax-sensitive transaction?)
IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised
that any written tax advice contained on this website was
not written or intended to be used (and cannot be used) by any
taxpayer for the purpose of avoiding penalties that may be
imposed under the U.S. Internal Revenue Code.