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munnientackses
New Member

Must I report rental income if I live in one unit of a rental property owned in Joint tenancy with my family, but receive none of the rental income from the other units?

 
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Accepted Solutions
CathiM
New Member

Must I report rental income if I live in one unit of a rental property owned in Joint tenancy with my family, but receive none of the rental income from the other units?

The IRS considers Form 1040 a cash basis tax return, meaning that you report income as you receive it.  Generally, if you didn't receive any income there is nothing to report. However, I would rely on how your family considers it. If the entire rental income isn't being reported by the other members of your family, they must be expecting you to report a certain amount they allocate to you.

If your family gave you a 1099-MISC for a part of the rental income, you must report that. 

If your family considers your "free rent" as your portion of the rental income, that is a barter situation. You would have to find out how much of the rental income they consider yours. Here is how you would enter income from a barter transaction:

You can report the bartered income as Miscellaneous Income by following the steps below:

TurboTax Deluxe and Premier 
1. Click Wages and Income  then Continue to Step 3 below

TurboTax Self-Employed

1.      Click on  the Federal on the left of your screen
2.      Click Income & Expenses at the top
3.      Scroll down to the bottom to Less Common Income and click Miscellaneous Income
4.      Scroll part way and Click Bartering income not already reported 
6.      
Type in the value of the rent you received

  In Turbo Tax Home & Business: 

1.      Click on  the Personal tab at the top
2.      
Click Personal Income
3.      
Click I’ll choose what I work on
4.      
Scroll down to the bottom to Less Common Income and click Miscellaneous Income
5.      
Scroll part way and Click Bartering income not already reported 
6.      
Type in the value of the rent you received

For more information See "Bartering" in IRS Publication 17    page 90

"Bartering is an exchange of property or services. You must include in your income, at the time received, the fair market value of property or services you receive in bartering. If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise.

Let me know if you have questions by entering a comment.

View solution in original post

3 Replies
CathiM
New Member

Must I report rental income if I live in one unit of a rental property owned in Joint tenancy with my family, but receive none of the rental income from the other units?

The IRS considers Form 1040 a cash basis tax return, meaning that you report income as you receive it.  Generally, if you didn't receive any income there is nothing to report. However, I would rely on how your family considers it. If the entire rental income isn't being reported by the other members of your family, they must be expecting you to report a certain amount they allocate to you.

If your family gave you a 1099-MISC for a part of the rental income, you must report that. 

If your family considers your "free rent" as your portion of the rental income, that is a barter situation. You would have to find out how much of the rental income they consider yours. Here is how you would enter income from a barter transaction:

You can report the bartered income as Miscellaneous Income by following the steps below:

TurboTax Deluxe and Premier 
1. Click Wages and Income  then Continue to Step 3 below

TurboTax Self-Employed

1.      Click on  the Federal on the left of your screen
2.      Click Income & Expenses at the top
3.      Scroll down to the bottom to Less Common Income and click Miscellaneous Income
4.      Scroll part way and Click Bartering income not already reported 
6.      
Type in the value of the rent you received

  In Turbo Tax Home & Business: 

1.      Click on  the Personal tab at the top
2.      
Click Personal Income
3.      
Click I’ll choose what I work on
4.      
Scroll down to the bottom to Less Common Income and click Miscellaneous Income
5.      
Scroll part way and Click Bartering income not already reported 
6.      
Type in the value of the rent you received

For more information See "Bartering" in IRS Publication 17    page 90

"Bartering is an exchange of property or services. You must include in your income, at the time received, the fair market value of property or services you receive in bartering. If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise.

Let me know if you have questions by entering a comment.

munnientackses
New Member

Must I report rental income if I live in one unit of a rental property owned in Joint tenancy with my family, but receive none of the rental income from the other units?

Excellent response! Thorough and complete. TurboTaxCathi you're awesome! Thanks!
CathiM
New Member

Must I report rental income if I live in one unit of a rental property owned in Joint tenancy with my family, but receive none of the rental income from the other units?

Thank you for your response!  Your welcome.
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