Question about claiming as income the $500 a month I charge my son for rent - we live in the United States.?

Question

We live in Missouri and I charge my adult son $500 a month for rent/food. Do I have to claim this as income?

Answer 1

Absolutely. However, this could wind up working to your advantage. You now have rental property (the area of the house that your son rents). The expenses you pay towards the maintenance and upkeep of that property may now be deductible. Notice I said "may". And it will only be a pro rated portion of those expenses. But, at the very least, it could lower your income due to the rental. At best, the Schedule E (Supplemental Income and Loss) could show a Loss to your income, which can be a great thing.
So definitely keep track of what he pays, but also of what you expend. Examples of expenditures are electricity, gas, water, new roof, and insurance. I've sent the appropriate IRS publication. I also recommend that you speak with a tax professional once you have all the information together. They'll be able to help you get things started (depreciation is rarely fun, even for those of us who do this professionally), so that you'll be off to a good start and simply have to keep it up in any future years. Contact me if you still need help! OK, just had to edit this after reading other answers. I understand not wanting to pay taxes. But so many people said not to because no one would ever find out. Not only is that just wrong, but not filing honestly could really be a disadvantage to your checking account at this point. Do yourself a favor and at least find out for sure. If you talk to someone and tell the truth and it adversely affects you, don't file at that time and consider your options. But at the very least, please look into what happens when you do it legally.

Answer 2

Technically, room and board is taxable to you as income. I would have him pay $500/month toward utilities and food for the household. This is the same thing under a different name, but is not legally taxable income.

Answer 3

Yes. Any monies that you recieve above and beyond your own is considerd taxable income. Even if it's your son. Hopefully you are giving him a reciept for the money that he pays you, just in case your ever audited by the IRS.

Answer 4

whitetras... is perplexed. lease isn't deducible. Technically, room and board is taxable to you as earnings. i might have him pay $500/month in the direction of utilities and nutrition for the enjoyed ones. it is the comparable ingredient decrease than a various call, yet isn't legally taxable earnings.

Answer 5

Legally, Yes. Technically, No. Ask yourself this Question: Is the IRS going to find out?

Answer 6

I'm not sure if you have to claim it as income but you have to claim it as something. Technically you are a landlord to your son because he gives you money, you have to claim it.

Answer 7

Same answer here, if it is room and board, you do not have to claim it. If it is rent, you do have to claim it.
It truly is contributing to household expenses, therefore, it is not landlord/tenant sort of thing.

Answer 8

If the room & board is in your private home and not rental property, Don't call it Rent.

Ask him for a $500 per month gift.

You can give a Gift to anybody you want of $12,000 per year without reporting it. You can receive a gift of $12,000 per your without reporting it.

Answer 9

Yes, if you charge him rent. But if he contributes to the expenses, ie, utilities, food, laundry etc. every month, then, no.

Answer 10

legally yes you do. any income you make has to be declared. if you're calling it rent the irs is calling it income.