@Hal_Al wrote:
I don't see a requirement, in MA rent deduction rules, that requires the landlord to be filing a federal tax return for the tenant to claim the state deduction.
The OP called it "rent" and the tenant is making a legal declaration that it is "rent" by claiming that on her tax return. So both parties are saying it is "rent", not just some cost-sharing. So in my opinion, there is no basis to not report it as rent.
Unfortunately, as Hal-Al pointed out, below-market "rent" may be even more problematic, and it is possibly you would not be allowed to claim deduction for it. I think the program does guide you in that matter, but whether or not it is a not-for-profit rental can be complicated.
