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3Hotdogs

(13,403 posts)
Thu Sep 1, 2022, 11:01 PM Sep 2022

Tax question. Our step daughter and family may move in with us in October. 2nd floor apartment and

will pay towards expenses, enough to cover utilities and portion of property tax.


There will not be profit from this.

Is it taxable?

8 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Tax question. Our step daughter and family may move in with us in October. 2nd floor apartment and (Original Post) 3Hotdogs Sep 2022 OP
Family is not taxable. Turbineguy Sep 2022 #1
I don't think that's quite right. spooky3 Sep 2022 #2
No. They will be contributing equally to the cost of running the house. There will not be excess 3Hotdogs Sep 2022 #6
You're welcome. I think you'll find the answer in that spooky3 Sep 2022 #8
We will not claim any deductions for operating the house. 3Hotdogs Sep 2022 #7
This is not the place to ask questions like this. euphorb Sep 2022 #3
I stayed w/ my sister for a couple of years Deuxcents Sep 2022 #4
Ask an accountant or a lawyer PJMcK Sep 2022 #5

spooky3

(36,209 posts)
2. I don't think that's quite right.
Thu Sep 1, 2022, 11:20 PM
Sep 2022

Will the amount they pay you exceed the costs, including allowable depreciation? Would it be fair market rental rate?

A non property owner generally can’t deduct property tax, mortgage interest, etc.

Former IRS auditor here.

The IRS has free publications that are good.

Here is a non-IRS site:

https://certifiedtaxcoach.org/five-tips-to-avoiding-the-tax-hazards-of-renting-to-relatives/

3Hotdogs

(13,403 posts)
6. No. They will be contributing equally to the cost of running the house. There will not be excess
Fri Sep 2, 2022, 06:49 AM
Sep 2022

into profit. It will be about $800 below market rental.


I will link to the website after work. Thanks for the info.

spooky3

(36,209 posts)
8. You're welcome. I think you'll find the answer in that
Fri Sep 2, 2022, 05:58 PM
Sep 2022

Article and the IRS publications on rental income, etc.

3Hotdogs

(13,403 posts)
7. We will not claim any deductions for operating the house.
Fri Sep 2, 2022, 06:53 AM
Sep 2022

It is not a business and has never been used for rental income. We bought it 50 years ago and Three of us owned it. Kids lived here until they moved out.

L and K became legal domestic partners. L died last year and her daughter wants to move in to L's apartment.

Daughter would be considered K's step-daughter.

euphorb

(291 posts)
3. This is not the place to ask questions like this.
Thu Sep 1, 2022, 11:22 PM
Sep 2022

This is a legal question. You have no idea what the qualifications are of anyone who purports to answer. If you rely on an answer and it turns out to be wrong, it may cause legal problems for you. See a real attorney in person and get reliable advice. It will be well worth it. Any good answer would require more details than you have given, and, besides, there could be both federal and state tax implications.

Deuxcents

(19,727 posts)
4. I stayed w/ my sister for a couple of years
Thu Sep 1, 2022, 11:22 PM
Sep 2022

Her husband had a heart attack n they were building a house so I was “property mgr”. I paid my share of property taxes, insurance but no rent..that’s how we decided n for tax time, I filed short form. No problem. Just keep it simple unless her name is on deeds. Worked for us. He’s thankfully recovered n I came back home.

PJMcK

(22,887 posts)
5. Ask an accountant or a lawyer
Fri Sep 2, 2022, 06:47 AM
Sep 2022

You'll get informed information.

On an internet chat board, you have no idea of the quality of any advice.

Incidentally, we're sub-letting our apartment (legally) and we intend to declare the rent as taxable income. Why take chances?

Good luck!

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