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Can I claim Renter's Deduction if I pay $800 for rent/cost sharing/debt-owed to a relative who owns and lives in the home? They make no profit and the house is paid for.

They are retired and do pay property taxes and my rent goes toward all expenses (groceries, several costly home repairs, utilities, debt owed, compensation for storage).
Since they make no profit they do not claim my rent as income.  Would my monthly payment count towards Indiana's Renter's Deductions for myself?
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2 Replies

Can I claim Renter's Deduction if I pay $800 for rent/cost sharing/debt-owed to a relative who owns and lives in the home? They make no profit and the house is paid for.

No. 

JamesG1
Expert Alumni

Can I claim Renter's Deduction if I pay $800 for rent/cost sharing/debt-owed to a relative who owns and lives in the home? They make no profit and the house is paid for.

@tiffbest001

 

The Indiana Department of Revenue IT-40 Instructions page 15 states:

 

You may be able to take the renter’s deduction if:

  • You paid rent on your principal place of residence, and
  • You rented a place that was subject to Indiana property tax.

Your “principal place of residence” is the place where you have your true, fixed, permanent home and where you intend to return after being absent.

 

You may need to segregate the rent from groceries, utilities per this Information Bulletin.

 

Information Bulletin #38 states:

 

If the taxpayer's payment includes items other than rent for the dwelling, the total payment must be segregated and the portion attributed to rent for the dwelling determined. Taxpayer C makes monthly payments of $200 for his apartment. His landlord provides the utilities which average $25 per month. Therefore, the taxpayer may use only $175 of his monthly payment as a basis for deduction. The taxpayer’s total deduction for the year would be $2,100.

 

 

 

 

 

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