My parents live with me at my house, they pay me some money as rent, and I support their food, utilities and other miscellenous expenses. I am going to cliam them as my dependents on my 2007 tax return. Do I need to include the money they paid to me as rent on my tax return as rental income?
2007-11-21 03:06:58 · 4 answers · asked by cathy 1 in Business & Finance ➔ Taxes ➔ United States
NO! It would be considered part of their support, which may have an impact on your ability to claim them as dependents. Or on the other hand it could be a "gift" which would have no impact at all, if that was their intent.
2007-11-21 03:24:28 · answer #1 · answered by ? 6 · 0⤊ 0⤋
Your family members pay you for their share of household expenses. This is not rent, but it is support that they provide for themselves.
You can claim them if you have provided over half of their support (subtracting what they pay you and the other expenses they pay for themselves), and they each had less than $3,400 of income subject to tax.
2007-11-21 03:35:30 · answer #2 · answered by ninasgramma 7 · 1⤊ 0⤋
The money they are giving you sounds more like sharing of expenses, not rent. As such, you wouldn't have to report it.
2007-11-21 03:55:14 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
I wouldn't
2007-11-21 07:26:06 · answer #4 · answered by glamour04111 7 · 0⤊ 0⤋