I am staying in US.I am staying with my friend.I am paying house rent monthly 700$ to my friend.But I don't have any proof.I would like to know house rent is exempted for US federal and State Tax.I need proof receipt of house rent or can i claim house rent exemption directly(If available)Please let me know ASAP.
2007-05-10 08:37:07 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
No, rent paid by you to your friend is not tax deductible to you for your federal tax return, but it is taxable income to him/her and needs to be reported on his/her 1040 on Schedule E. However, Massachusetts does give a deduction (50% of rent paid up to a maximum of $6,000 (results in a $3,000 deduction)) for the state tax return. I am not sure about other states, but do know that for Massachusetts. You could deduct rent paid if you had a "home office" but it would be reported as part of either a schedule C using Form 8829, or on a Schedule A under miscellaneous itemized deductions using form 2106. But either way you could only deduct the % of rent that you paid that was for your office compared to the entire house (If your office was 10% of your house that you rented, than you could deduct 10% of your rent as a business related expense). And with the Schedule A you would have to exceed 2% of your AGI to be able to deduct it.
2007-05-10 16:50:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
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2016-07-18 21:17:59 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Your question is not clear. If you are paying rent for an apartment or house for your personal use it is not deductible; unless you are renting it for business purposes. If you maintain a home office a portion of your rent may be deductible on a form 8829 for home office expense. If you are collecting rent then you put it on a Sch E and report it with your income tax filing and pay your taxes like the rest of us.
2007-05-10 10:31:06 · answer #3 · answered by acmeraven 7 · 0⤊ 2⤋
There is no "tax exemption" for rent, LOL!
But there IS a reporting requirement that your "friend" declare that money as income! If he is letting or subletting part of a house to you, he is in effect running a business, and must declare the money you pay him as income!
Don't pick up any bad habits from this person!
2007-05-10 08:42:03 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Rent-To-Own Homes - http://RentToOwnHome.uzaev.com/?lPcD
2016-07-12 10:08:35 · answer #5 · answered by ? 3 · 0⤊ 0⤋
Sorry, but rent is not deductible. There is no "house rent exemption" in the US.
2007-05-10 09:51:04 · answer #6 · answered by Bostonian In MO 7 · 1⤊ 1⤋