A friend will stay at home, and share expenses. This is not a romantic partner. Is there a tax implacation or rent tax in this case? How do I report this?

[joaoxfranco]

A friend will stay at home, and share expenses. This is not a romantic partner. Is there a tax implication or rent tax in this case? How do I report this?

[Bsch4477]

Cost sharing is not reported on your tax return.

[Hal_Al]

If this is merely a cost sharing arrangement where the amount paid is below fair market rental, there would be no reportable income to you. If the “rent” amount is fair market value, or more, there is still some question as to whether you even have to report it, as it almost always comes out zero. Most people take the attitude that it is not income; it's just room mates sharing expenses and ignore it. Family, or friends,  as opposed to unrelated roommates, makes that position stronger.

What you are NOT allowed to do, because it is your own home (you have "personal use") is claim a loss from this activity, to offset other income. Because of the "personal use rule", your deductions are limited to your income. Net effect ZERO.

[joaoxfranco]

Could that person put their share as "rent" if they wish to apply for foodstamps?

[Hal_Al]

Probably. But that's not a  tax question.  The food stamp people would have to answer that.

[Carl]

Generally if your cost sharing arraingment is not with an intent to make a profit, you report nothing. You're just sharing expenses, and that's it. If there is a need for the person sharing expenses with you to show those expenses in the form of their housing costs, then since they don't own the home they will have to show they paid and/or are paying rent, and you will need to do exactly that - rent to them. You'll probably need a formal and legally recognized rental contract which isn't all that hard. On top of that, you have to report/claim the income on your tax return.

Then depending on what state you're in, you not only have to report that income on your state return. You may also have to conform to any landlord/tenant laws of your state, as well as any applicable ordinances of your particular locale within the state. Some states offer a "renter's credit" which means you have to register with the state or other locale within the state as a landlord/rental property owner. This usually requires you to issue state tax documents each year to the tenant so they can claim their renter's credit on their state tax return.

Then again, depending on the requirements of your state when it comes to state provided assistance, none of this may be necessary at all. You'll need to check with legal counsel regarding this, in your specific locale.

[joaoxfranco]

@CarlThe state is Florida.

[Carl]

Since FL doesn't tax personal income, I'd treat it as a cost sharing arraingement with no intent to make a profit, provided of course that is not your intent. Sounds to me like you're just helping out a friend in need who is also helping you by sharing expenses. Now I'm not sure if FL requires an applicant (be it for welfare, food stamps or anything else) to prove that expense. But they may accept a signed and notarized document from you stating that the applicant lives with you and does "in fact" share your household expenses.

For ths SNAP program start at https://florida-foodstamps.org/how-to-apply/?utm_source=google&utm_medium=cpc&utm_campaign=FL_Food-S... to get an idea of what's needed. I would say that if the applicant is "in fact" paying half the expenses, then they should pay their share directly without you as the middle man.

In other words, when you get the electric bill and it's for $200. You make out a check on your account to FPL for $100, and your roommate also makes out a check for $100 payable to FPL. Taking you out of "the mix" as a middleman makes proving they are paying for their share of support that much easier.