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We are buying a 2 family brownstone and renting the top floor apartment to my sister. Does the fact that she is a relative at all impact the tax situation? Do we still have to claim the income or is it different if she is related to me?

Also, if we rent it out to her or anyone else for a few years, claiming the income, and then we start making enough money to stop renting it and start using the whole house for ourselves, does that help us when we sell as far as this whole depreciation tax stuff I have read a bit about? I am confused about that bit.

Thanks so much.