If I own my house and b/f moves in with me, how is that accounted for on both sides for taxes?

nataliesmith2001 — Tue, 04 Jun 2019 20:17:04 GMT

I own my own house and I am contemplating having my boyfriend move in with me and pay rent in the coming year, how would we both account for that on our taxes? Would he be able to claim the rent credit for paying rent in that year? For being the owner, how would I have to account for that rent income on my taxes?

Yes, if he is actually paying rent he would qualify for t...

SusanH — Tue, 04 Jun 2019 20:17:06 GMT

Yes, if he is actually paying rent he would qualify for the rent credit

You would have to report the income and expenses on your tax return. If entering it as a Not-for-Profit rental (not charging him market rate for rent) you would have to manually prorate the whole house expenses for the amount of space he would occupy. (ex. he rents 200 sq ft of 1000 sq ft house, you would enter 20% of the expenses).

If you were charging him market rate for rent, you would report the rental on Schedule E.

Instructions for both scenarios are below. Please be aware that these instruction sequences are for the current year and may be different next year when you go to enter your rental information.

To report Not-for-Profit (NFP) income in TurboTax

Click on Federal Taxes
Wages and Income

You may need to click Jump to Full List, Show me everything or I’ll choose what I work on depending upon your situation and the TurboTax version you are using.

Scroll to the very bottom; Less Common Income; Click Show more (if start isn’t displayed)
Click Start across from Miscellaneous Income, 1099-A, 1099-C
Scroll to the Bottom and Click Start across from other reportable income
At the “Other Taxable Income” screen, enter your description – Not for Profit Rental and then amount of income you received.

You can also enter your NFP expenses as part of Miscellaneous Itemized Deductions.

If you want to enter your NFP expenses:

Go to the Federal Taxes tab
Deductions and Credits
Click “I’ll choose what I work on”
Scroll down to Deductions and Credits
Click Other Deductible Expenses Start.
At the “Less Common Expenses” screen, say yes.

On the next screen you can enter your NFP Rental expenses.

You will need to pro-rate your total expenses and only report the portion that is allocable to the room you rented. If for instance, your house has a total of 8 rooms than you would report only 1/8 of your expenses. You can also use the exact square footage of the room versus the whole house if you have those measurements.

Please click here for more information on NFP Rental expenses

Your NFP Expenses amount will go to line 23 of your Itemized Deductions Schedule A. If they are more than 2% of your Adjusted Gross Income, they will be included in your Schedule A. If your standard deduction is higher than your Schedule A (Itemized deductions), you will use the standard deduction instead; TurboTax will default to the higher deduction.

Here are the 2015 standard deduction amounts for each filing status:

Single or Married Filing Separate - $6,300
Married Filing Jointly or Qualifying Widow(er) - $12,600
Head of Household - $9,250

Here's how to get started entering your rental.

https://ttlc.intuit.com/replies/3288530

topic If I own my house and b/f moves in with me, how is that accounted for on both sides for taxes? in Deductions & credits

If I own my house and b/f moves in with me, how is that accounted for on both sides for taxes?

Yes, if he is actually paying rent he would qualify for t...