Elderly parents living with us paying rent and my spouse is a caregiver - is it income?

[cbarbinnj]

Hi,

We have elderly parents who:

• are living in our house
• pays us monthly "rent"
• my spouse provides caregiver services to them (taking them to doctor offices, doing their laundry, etc) and is not able to work a full time job given their needing my spouse's day to day support
• are not considered dependents in our tax return (given their income above the dependent threshold)

How should we treat the monthly "rent" in our tax return (rental income)? Is it considered a gift, given it is below the 2022 $16,000 threshold? I see this section in IRS' caregiver FAQ - does this mean I do not need to report this "rent"?:

I care for my parents in my home. My parents occasionally give me money to pay for their share of ho...

Answer:

An amount of money that your parents give you to offset their expenses isn't taxable to you. This amount is treated as support provided by your parents in determining whether your parents are your dependents.

Thanks!

[Bsch4477 · Accepted solution]

You are just cost sharing. No reporting is necessary. 

[xmasbaby0]

I agree with Champ Bsch4477.    You have family cost sharing which does not get entered on a tax return.