Hypothetically, let's say if I own a investment property (single family house) and I want to rent it to my family member for "free", but it won't be free on paper because I will charge them rent (fair market value) but in the form of gift to them. Should I:
A) Write them a check at the beginning of the year, and then have them write me 12 rent checks (one per month)
or
B) No money exchange hand is needed as long as the Rent total doesn't exceed Annual Gift Tax Limit?
BTW, just thinking out loud that maybe by doing this I can gain some tax savings (so I can offset other investment property incomes as well as writing off mortgage interests, property taxes, and other expenses) with the new Tax law.
A) Write them a check at the beginning of the year, and then have them write me 12 rent checks (one per month)
or
B) No money exchange hand is needed as long as the Rent total doesn't exceed Annual Gift Tax Limit?
BTW, just thinking out loud that maybe by doing this I can gain some tax savings (so I can offset other investment property incomes as well as writing off mortgage interests, property taxes, and other expenses) with the new Tax law.