If I let my daughter live in the upstairs of the house I rent for $400 a month do I have to claim that as income

[angiepat2019]

I am doing a rent to own on a home but do not own it yet. My husband and I live downstairs we want to let my daughter her husband and their daughter live upstairs. If we charge them $400 per month do I have to count that as income or would that basically just count as family kind of living together helping each other

Also would it matter if the house is split and has separate entrances but we still use one address (all utilities are shared)

[Vanessa · Accepted solution]

If you are allowing your daughter to live there at below the fair market value and are simply considering the $400 a month as a payment towards expenses, then no you do not include it as rent even if you do have separate entrances.