Real Estate

[kucmon]

In 2022, my wife and I helped her sister and husband purchase a home because they could not get a mortgage due to their bad credit.  My wife and I are legally the joint owners.  All payments are withdrawn from our joint account but are paid back monthly by my sister-inlaw.  Does this classify as rental income? Or is this a cost-sharing agreement?  What forms do I need to fill out?  This is a short-term arrangement and they will be assuming legal ownership in the next 2 years.  

Thanks

[TurboTaxSusan]

If you are not charging your in-laws the same as you would someone off the street, then this a cost-sharing agreement.

[kucmon]

Thanks for the reply!

[TurboTaxGinette]

You're welcome.

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