The tradeoff there is that you can no longer depreciate the portion of the house that person lives in. Not sure which is bigger, but being able to effectively p

The tradeoff there is that you can no longer depreciate the portion of the house that person lives in. Not sure which is bigger, but being able to effectively push current income into the unrealized capital gains on your home is fairly attractive. On the other hand, you need to be charging market rents with the intent to try to make a profit in order to do this on your taxes, and that means keeping track of rent payments and reporting them. And any profit here could mean that what would otherwise be an untaxed sharing of expenses is now a taxed profit-seeking transaction.