Newsflash: My parents volunteered to start paying me above-market rent

About six years ago, I bought my parents a Florida condo to live in. They pay me what they could afford in rent, $800 a month. They didn’t have much by way of assets, and since my father had a stroke, he has been unable to work. I’ve taken a loss every year, which I was prepared to do, but the condo has appreciated nicely.About six months ago, my dad came into about $40K from the sale of his stake in a private company. This weekend, he volunteered to increase his rent payments to $2000/mo. Market rent would be more like $1600/mo.I don’t think that it’s a good idea, and turned him down. But I’m wondering if there are there tax or legal implications of collecting rent above market rates. Any advice?



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s