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A family member has been renting out my house for all last year and I have been paying the rent can I deduct all of this? and not report this as rental income?

If you let a family member live in your rental property do you still have to report money you receive from them on your taxes 

A family member has been renting out my house for all last year and I have been paying the rent can I deduct all of this? and not report this as rental income?

If you rent your home to a family member is the rent you receive taxable ..the rent only covers taxes ..insurance and mortgage payment ?

A family member has been renting out my house for all last year and I have been paying the rent can I deduct all of this? and not report this as rental income?

How would you know what fair market value would be 

ee-ea
Level 15

A family member has been renting out my house for all last year and I have been paying the rent can I deduct all of this? and not report this as rental income?

A family member has been renting out my house for all last year and I have been paying the rent can I deduct all of this? and not report this as rental income?

The total mortgage payment is irrelevant.  You only get to deduct the interest and property taxes.

TomD8
Level 15

A family member has been renting out my house for all last year and I have been paying the rent can I deduct all of this? and not report this as rental income?

@Sawhe-1000 --

 

Per the IRS:  

"Report your not-for-profit rental income on Schedule 1 (Form 1040), line 8."

https://www.irs.gov/help/ita/is-my-residential-rental-income-taxable-and-or-are-my-expenses-deductib...

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

A family member has been renting out my house for all last year and I have been paying the rent can I deduct all of this? and not report this as rental income?

Yes, you always have to report rental income, no matter who is renting and for what amount. If ytou rent to someone for less than you could normally rent it for, this is considered not-for-profit. This is considered your second home. You can deduct the mortgage interest and property taxes, like you normally would a second home.

A family member has been renting out my house for all last year and I have been paying the rent can I deduct all of this? and not report this as rental income?

Hey, correct me if I'm wrong, but the IRS website is saying this income is taxable, must be reported and is no longer deductible... apparently they eliminated the misc deduction... please correct if wrong....


From IRS website:

The rental payments are taxable.

When your property is not rented with intent to profit, certain expenses are deductible if you itemize your deductions on Schedule A, Itemized Deductions. You can deduct mortgage interest on your main or second home, real estate taxes, and some casualty losses on the appropriate lines of Schedule A.

Under the Tax Cuts and Jobs Act, the remaining expenses, formerly treated as miscellaneous itemized deductions subject to a 2% limitation on Schedule A, are no longer deductible.

A family member has been renting out my house for all last year and I have been paying the rent can I deduct all of this? and not report this as rental income?


@styopr wrote:

Hey, correct me if I'm wrong, but the IRS website is saying this income is taxable, must be reported and is no longer deductible... apparently they eliminated the misc deduction... please correct if wrong....


You are not wrong.

A family member has been renting out my house for all last year and I have been paying the rent can I deduct all of this? and not report this as rental income?

this is such a great response.  It answered my question and is exactly what I wanted to know.  Wanted to know how to report the income but now I understand how the "renting at fair market" value comes into play with reporting.  thanks so much

A family member has been renting out my house for all last year and I have been paying the rent can I deduct all of this? and not report this as rental income?

IRS Topic NO 414 Rental income and Expenses.  The very first statement shows the following:  CASH or the fair market value of property or services you receive for the use of real estate or personal property is taxable to you as rental income.  In general, you can deduct expenses of renting property from your rental income.

Now the KEY WORDS ARE THIS:  FAIR MARKET VALUE OF PROPERTY.   therefore if you're NOT RENTING at Fair Market Value (FMV) then it is not then rental income ..in my opinion.

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