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fire_wife
New Member

Can I claim my parent as a dependent when she shows a loss on rental income for the year, she receives social security and lives with us?

 
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Coleen3
Intuit Alumni

Can I claim my parent as a dependent when she shows a loss on rental income for the year, she receives social security and lives with us?

Probably not. When determining gross income for a dependent, you must include the gross rent, not the net after expenses.

Gross Income Test To meet this test, a person's gross income for the year must be less than $4,150. Gross income defined. Gross income is all income in the form of money, property, and services that isn't exempt from tax. In a manufacturing, merchandising, or mining business, gross income is the total net sales minus the cost of goods sold, plus any miscellaneous income from the business. Gross receipts from rental property are gross income. Don't deduct taxes, repairs, or other expenses to determine the gross income from rental property. Gross income includes a partner's share of the gross (not net) partnership income. Gross income also includes all taxable unemployment compensation, taxable social security benefits, and certain scholarship and fellowship grants. Scholarships received by degree candidates and used for tuition, fees, supplies, books, and equipment required for particular courses generally aren't included in gross income. 

https://www.irs.gov/pub/irs-pdf/p501.pdf

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