I own my home, and I have one roommate. I pay my mortgage monthly, and she pays me a flat check monthly for rent and utilities. Am I really supposed to report this to the IRS? How would I report it? Are there any tax loopholes? Thanks!
2007-04-18 12:43:45 · 4 answers · asked by thoir1845 1 in Business & Finance ➔ Taxes ➔ United States
That is generally considered sharing of expenses and has no tax consequences. You do not need to report the income and you get no deductions for any related costs. As far as the IRS is concerned, it's a wash.
If you were in the business of renting out rooms to anyone who had the cash -- i.e. running a rooming house -- that would be different.
2007-04-18 12:54:44 · answer #1 · answered by Bostonian In MO 7 · 3⤊ 2⤋
Officially, it is income and you are supposed to report it. Unofficially, most people probably don't as long as it isn't a real estate investment. Just know that there are consequences if you get caught.
2007-04-18 19:50:54 · answer #2 · answered by Brian G 6 · 0⤊ 2⤋
I would say u r sharing expenses it would not hurt to check more if you would be asked and this is a long shot I would say u sharing expensesr
2007-04-18 20:27:16 · answer #3 · answered by mars1012000 2 · 1⤊ 0⤋
Yes but why do it.
2007-04-18 19:47:14 · answer #4 · answered by Anonymous · 0⤊ 4⤋