My girlfriend owns a home. I moved in and pay half the mortgage payment as my share of rent. Does she have to claim it as income, and can I claim it as rent paid?
2007-02-23 20:21:13 · 6 answers · asked by wintercampground 1 in Business & Finance ➔ Taxes ➔ United States
i think she has to show it as her income and you have to show it as your payment.
here is a tax site which will be beneficial to you try this and get the tax reductions.
bye
2007-02-23 22:19:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
For tax purposes, your girlfriend should be claiming the rent that you pay as income. However, you will not be able to take the rent payments as a deduction unless you are renting space for a business purpose and not just living there which is probably the case.
That is the technical answer to your question.
What will probably happen is that she won't claim the rent at all.
If you are that worried about it, arrange the "rent" payments as follows (assumes her mortgage payment is $1000 a month):
1. You do not pay any rent to her at all. You live for free. Put it in a contract if necessary.
2. You pay for all of the utilities and food and other costs that equal up to $1000.
3. Split all costs after that 50/50.
2007-02-24 00:03:29 · answer #2 · answered by Steve 6 · 0⤊ 0⤋
hi there
as your girlfriend owns the house she cant claim the rent. but you can ask her for a receipt for the rent you are paying, because if there are any problems with the repayments you can show her you have helped out or pulled your weight by paying rent. this will help you if you guys spilt up and you want the money back for some reason or she says you didn't pay anything towards the house.
the best advice i can give is never share bank accounts and keep all receipts for any of the house improvements you make. coz you never know when you need them. keep them in a safe spot.
its helped me.
2007-02-23 20:38:18 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can do that without any problems at all. Just remember that rental income is taxable and that you are legally required to get permission from the lender if there is still a mortgage on the property. You will also need to amend the home insurance policy and have things like gas safety certificates. Even though she is a friend, you still need some sort of rental agreement drawn up.
2016-05-24 05:05:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
What I do know is that she will have to claim the rent money as income on her taxes. As for claim for rent paid, I think so.
2007-02-23 20:33:12 · answer #5 · answered by greylady 6 · 0⤊ 1⤋
Technically she is supposed to, but i doubt many people in the same situation report it.
Any obvious workaround is to not pay her rent, but pay all the utilities, cable, internet, food.
2007-02-24 07:17:30 · answer #6 · answered by Quixotic 3 · 0⤊ 0⤋