If I buy a house for my daughter who is in the middle of a divorce can she deduct rental payments paid monthly to me since I am funding the house Her husband still lives in their home and pays the mortgage. I could put her daughters name on the deed but then the husband would not believe she is paying rent. But in my name I would charge her rent with a receipt each month to show her living expenses. Would it be better in my name so she could show rental payments Her daughter lives with her.
Answer
You need to be careful since she is in the middle of a divorce. If any property goes into her name it could be considered community property and he would be entitled to 50%. I recommend that you talk to her attorney. Also, many judges "suspect" family member transactions so you must be able to document everything - she needs a real lease and she needs to pay you each month in a timely manner - otherwise it could be considered "suspicious" by the judge.
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