I rent to my cousin at less than fair market value. He includes the amount of utilities in his check to reimburse me, do i count the total of the check as rental income?

TinkerBell01 · ‎June 3, 2019

Do I add up the total of the checks and count that as rental income and not claim any rental utility expenses, or do I separate the amount for the utilities I am being reimbursed for and add them up and count them as a rental expense. I know since I am renting at less than fair market value that I cannot claim more expenses than my rental income. Will Turbotax do the math for me and correctly compute my deductions since I have indicated that I have rented zero days at fair market value? Also, can I enter the rental information on the same screens I would use for renting at fair market value (since I have indicated that I am renting at less than fair market value? Will Turbota handle it correctly?

PatriciaV · ‎June 3, 2019

No, the total income to be reported would be the total payments less the utility portion. Since your tenant reimbursed you for the utilities, you would not have any expense to deduct.

You would not report this under Rental Properties. Instead, follow the instructions below:

https://ttlc.intuit.com/replies/5898460

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I rent to my cousin at less than fair market value. He includes the amount of utilities in his check to reimburse me, do i count the total of the check as rental income?

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