Father receives VA A&A. Pays me for housing and care. I have a care giver agreement that shows I provide housing and help with transportation, laundry, cleaning, etc. Housing expenses include help with larger mortgage, utilities, etc. I show these expenses as "rental income".
Remainder is for basement which was built out for him to live in addition to Caregiving expenses. Do I claim this portion as income for me or is it part of the IRS Notice 2014-7 Waiver because he's receiving non-taxable A&A and choosing to pay me for his care instead of outside OR as reimbursing me for expense of building out basement for him which falls under IRS rule that money paid by parents to offset their expenses isn't taxable to me.
