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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (30291)	4/28/2005 4:03:20 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

re: imputed rent Definition: rent implied by law as being fair market value, just in case you're renting to a friend/relative/other personal acquaintance at way below market rate and trying to convince the IRS you should get the same tax treatment as you would get by renting at probable/estimated/real market value. As I understand it, an imputed amount is the amount IRS expects you to report as "fair market value" when claiming a deduction or expense against a property. Imputed interest is an amount IRS will assume you charged a buyer of property in an owner-financed sale when calculating your tax liability. Imputed rent is an amount IRS will say you should be using to claim any expenses against a rental property, as well. Therefore, as I vaguely recall from "real estate school", you shouldn't expect to rent or sell to a kid/friend/relative of yours for a severely discounted low price and expect the same tax treatment that you would have received had you rented or sold at fair market value. Consult a lawyer for more detailed info. I ain't one.