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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
If you rent your home to a family member is the rent you receive taxable ..the rent only covers taxes ..insurance and mortgage payment ?
How would you know what fair market value would be
Use this info for FMR
https://www.huduser.gov/portal/datasets/fmr.html#survey_info
The total mortgage payment is irrelevant. You only get to deduct the interest and property taxes.
@Sawhe-1000 --
"Report your not-for-profit rental income on Schedule 1 (Form 1040), line 8."
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.
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:
@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.
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
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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