@Kourtneyhamm wrote:
My step dad pay mortgage I pay him rent
Do you have a formal rental agreement? Is the rent a fair market amount that a like space would cost on the open market in your area?
Does he declare the rental income as a landlord on a Schedule E and pay tax on it?
If not, then it is not rent no matter what you want to call it - is is a simple sharing of expenses by a family member of the household.
The IRS and tax court has allowed two taxpayers to claim HOH under the same roof as long as they live as two totally separate living units. Separate food, separate living (sleeping) space, etc. I have not seen a case that was approved for closely related persons.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
