I have read SEVERAL post on this subject but I can't seem to find the right answer. My question: I rent my ONE and ONLY home that I own to my son for less than fair market value. I pay the HOA, th...
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I have read SEVERAL post on this subject but I can't seem to find the right answer. My question: I rent my ONE and ONLY home that I own to my son for less than fair market value. I pay the HOA, the landscaper service along with all expenses having to do with owning a home, property tax, insurance etc. I do not live in this house that I own, I live with my partner in his house he owns. Is this considered rental income, not for profit income or schedule E income if the funds I receive are greater than the homeowner expenses? OR is this rent cost sharing expenses that are not reportable income to the IRS? The answers posted by Turbo tax in similar scenarios are a mix of answers. As an example, I copied and pasted one of the of Turbo /Question/tax answers below. So is the below answer true? If so what publication states this to be true. If not true, how do I report this rent that my son pays that is not FMV. Several Turbo tax responded/answered with cost sharing response. So is this true or false or does family contribution count as reportable rental income? Please let me know. Question: Family Member lives in my house, and contributes towards mortgage. Do I need to report that money as taxable income? Turbo tax answer: " Every day that you "rent" to a family member below FMV is considered a day of personal use by you. If you have 14 or more days of personal use, then to the IRS you no longer have a rental property. In that circumstance, if your family member helps pay some of the expenses, then you have a cost-sharing arrangement - not rent. Cost-sharing between family members is not taxable income to you. Your relative isn't paying you; he's paying his share of the bills."