I have heard from some that I could lose all tax deductions (depreciation, maintenance costs, etc) for renting a property to an immediate family member. This has me concerned. I plan to let my son live in the property as long as he chooses. He will be paying me a small rent, and covering the maintenance fee, utilities, etc.. When I die, he will get the property.

I just want to make sure I don't get in trouble with the IRS for renting to a family member. Is it legal to do this and still claim all of the standard deductions?

Any help/advice for a newbie GREATLY appreciated

Do you own the property as a second home or is it an investment property?
If as an investment property make your son sign a new lease each year. The IRS does not care to whom you rent if it is an investment property.

It will be an investmenmt property. Thanks for the response...takes a load off my mind!

as long as your son is legally paying you, why would the IRS go after you?

I agree with investment comments made above in regards to your son and you in a binding contract. Yet, make sure you lease the property at market value as to not depreciate the value of the property. Whatever your son gives you thats up too you both but it will not harm the property value. ex. Rental property in area are set at $1500 do not rent for $500 because its family. Appraisers and banks do not see this way. Just my opinion.

Renting below market will not depreciate the properties longterm value it will only effect the short term cashflow. Most appraisers will make a note concerning the below market rent being made to a family member but this would only apply if it was being refinanced.
Following your advice of leasing for market but accepting less would play hell with the Schedule E for that property.