2006-11-14 04:01:32 · 10 answers · asked by jane l 1 in Politics & Government ➔ Law & Ethics
Yes, probably if the rent is fair; although it would be wise to get the approval of all her heirs. And if she has a durable ("enduring" in England) power of attorney, you need to get permission from the POA holder.
But charging rent has tax consequences: income, capital gains, estate. And in both the USA and the UK you may forfeit part of the exemption from paying capital gains tax on sale.
And if no rent is charged, there's a discussion going on now among practicing lawyers as to whether gift tax is due. Probably not in your case; but Eliot Spitzer (governor-elect of NY) lives in a NYC mansion owned by his father, and his father does pay gift tax on the rental value every year. According to the NY Daily News.
Often charging rent to a parent makes good tax sense; and also reduces the size of an estate somewhat. And in the UK paying 20% basic rate instead of 40% IHT makes sense. In the USA estate duty is up to 55% in some states, so it may make even more sense. At the risk (as I wrote above) of perverse tax consequences later.
But there should be a family consensus before you try this. Will contests can be bitter, and expensive.
2006-11-14 04:03:49 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You're probably hoping to get housing benefit, is that it? In which case, it would not be so much you claiming rent as your mother in law claiming Housing Benefit. In some situations, the local authority may refuse Housing Benefit where it suspects that it is ‘non-commercial’, for example, because it is not legally enforceable.
This rule might exclude your mother in law as someone paying rent to a close relative who lives in the home. However, here the arrangement seems to be separate. You don't make it clear how separate. The local authority may also apply this rule if they think the rental arrangement has been set up only to get Housing Benefit (this is called ‘taking advantage of the Housing Benefit scheme’). The local authority may say that this arangement ‘takes advantage’ if an adult living in someone else’s home suddenly starts to pay them rent.
There seems to be no hard and fast rule, therefore, and it is within the discretion of the local authority. Most of us would be happy to let our aged relatives live with us rent free, having lived with them rent free for so long while we were young.
2006-11-14 06:18:23 · answer #2 · answered by Doethineb 7 · 0⤊ 0⤋
If you are providing room and board for her, you can deduct a certain amount when you file annual IRS forms. There is some information on the web, but to get the full facts, you can make an appointment for consultation with a tax lawyer or a Certified Public Accountant who specializes in taxes.
2006-11-14 04:20:39 · answer #3 · answered by beez 7 · 0⤊ 0⤋
In contest between determine and grandparent, the determine wins, so some distance as IRS is in touch in case you and/or hubby are dependents of mom, then you definately won't be able to have your guy or woman based the undeniable fact which you reside decrease than her roof does not on my own provide her the main suitable to declare your son as based this is not insulting, yet greater probably desperation. . . .and absence of gratitutde by ability of a few. . . . while you're paying a million/2 the own loan, paying her lease, then she isn't helping you or son And no depend while you're making a dent in her costs is definitely irrelvant (aside from utilities) of course, there are 3 of you and a million of her residing in homestead, so no depend if that's trouble-free to pay a million/2 could be an argument; and what approximately utilities? and you're able to desire to continuously get your guy or woman place, help yourselves entirely. . . . .
2016-10-22 02:02:05 · answer #4 · answered by ? 4 · 0⤊ 0⤋
You can, as you can claim rent on anyone over 18 that isn't your Husband/Wife. However if she changes the locks whilst you are out she has Squatters rights but if she lets you in and you tell her to get out she has to.
2006-11-14 09:33:53 · answer #5 · answered by J B 3 · 0⤊ 0⤋
I'm not sure if you can claim for her rent but you will possibly be able to claim if you are her carers. You will get a weekly carers allowance for helping her with daily tasks such as cooking her meals and doing her washing and cleaning if she is unable to do these herself.
2006-11-17 02:44:39 · answer #6 · answered by ♥ Miss Sausage ♥ 5 · 0⤊ 0⤋
i wouldn't tell the gov't anything. there is no law saying we have to pay income taxes, they can't find one because this is none.
2006-11-14 04:04:27 · answer #7 · answered by Anonymous · 0⤊ 0⤋
NAH just put her in a home if you are that loving to her
2006-11-14 04:03:21 · answer #8 · answered by Anonymous · 0⤊ 0⤋
greedy sod
2006-11-14 04:03:56 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Why be so mean ??? She kept your husband when he was young.
2006-11-14 04:03:25 · answer #10 · answered by Anonymous · 0⤊ 0⤋