What is the difference between a roommate situation and and shared living expenses?

c-mills73 — Mon, 03 Jun 2019 19:02:55 GMT

Share home with two friends. They pay utilities and set monthly amount. I pay taxes, maintenance, all other expenses. Are we roommates or sharing household expenses. What is the difference?

Here is some information that might be helpful for you. h...

DustinTS — Mon, 03 Jun 2019 19:02:56 GMT

Here is some information that might be helpful for you.

https://ttlc.intuit.com/replies/4838699

If you want to consider the amount received as rent, then it would be a not-for-profit rental which is covered in IRS Publication 523 on page 16 - https://www.irs.gov/pub/irs-pdf/p527.pdf#page=16

"If you do not rent your property to make a profit, you can deduct your rental expenses only up to the amount of your rental income. You cannot deduct a loss or carry forward to the next year any rental expenses that are more than your rental income for the year."

Otherwise any amounts received from your room-mate is shared expenses and not reported on your federal tax return.
You can still deduct the mortgage interest and property taxes as itemized deductions on Schedule A of the tax return as the owner of the property.

topic What is the difference between a roommate situation and and shared living expenses? in Deductions & credits

What is the difference between a roommate situation and and shared living expenses?

Here is some information that might be helpful for you. h...