Search Help

Enter one of more keywords to search. Use quotes for “exact phrase.” Note that '*' and '?' wildcards are supported.

When your search results appear, you can refine your search further: Sort for only results in which all search terms appear AND/OR sort by chronological order.


Saving Taxes When You Rent to Relatives

Have you ever thought about renting to your relatives? It’s a great way to get wonderful tenants you already know.


Of course, renting is still a business agreement – even if your tenant is your college-age child or your retired in-laws.


As with every business agreement, this rental requires a clear understanding of what is and isn’t permitted by law. So set down the ground rules, then you can relax.


The Core to a Safe Rental Strategy

Here’s a good tip to remember when renting to relatives (it will help you escape the rental triple whammy): Charge a well-documented and market-supported fair rent to your relatives.


That way, your rental property will not get misconstrued as a second home.


Here are a few ways to prove the rent you charge is fair:



Print listings for similar rentals in the same neighborhood from


Cut out comparable rental ads from local newspaper want ads


Get letters from property managers


Obtain an independent appraisal

Get the Whole Picture

There are many more best practices for renting to relatives. To get all the details, read the whole article: Tax Savings Tips When Renting to Relatives. (Plus, get great tips for what to do with a vacation rental).


You will be prompted to log in if you are already a subscriber to Tax Reduction Letter.


If you are not yet a subscriber, CLICK HERE. You'll get a no-obligation 7-day FREE trial during which you can read all of our helpful tax saving tips from the last two months. This trial is absolutely free and there are no strings attached.


To recap: Be sure to charge your relatives fair rent. Keep your relationship in good standing and your tax deductions on solid ground.