Is money received from an insurance company for renting part of my home to someone who lost his home in a fire, checks made out to both of us, taxable?.

[pwelke]

I was asked to prepare a simple rental agreement. Paid monthly to both me and renter as insurance monies to cover living expense. No tax documents from the insurance company received. checks issued to both of us with renter named first.

[PaulaM · Accepted solution]

You have rental income if you rented a part of your home for longer than 14 days, but only for the amounts attributed to the rental 'unit'. Don't include in income amounts that went to the renter for living expenses.

Record in the Rental section, that you rented a part of your home. For the personal use question, enter 0 days if you never used the rental unit personally once it was rented. Continue to enter the income and any expenses that you incurred while the unit was rented.