I live in Western Colorado. My parents live in Price, Utah. Several years ago, my sister came to Price and began living with my parents. A few years later she began collecting a monthly dispensation from the state of Utah because she was deemed “unemployable”. My parents bought a small house for her to live in, for which they pay a monthly mortgage. Housing Authority of Carbon County, Utah pays my parents a monthly allowance to cover my sister’s rent for the house. The allowance is enough to cover the mortgage payment and some amount for repairs and maintenance on the house. My father passed away a few years ago and my mother worried that if she were to pass, the monthly allowance from Carbon County would disappear. For this reason she wanted to have the allowance assigned to me instead of her. She explained in detail to the Carbon County Housing Authority representative her concerns and they assigned the allowance to me. I am at a loss as to how to properly report all this. The house and mortgage are in my parents name and the allowance is reported as rental income to me on a 1099-misc. I set up a savings account for this money and the mortgage is set up for auto-pay from this account. How can I report the mortgage payment to offset the income from Carbon County? Or how do I report it without having to tie it to the property owned by my mother?
