What is the difference between a roommate situation and and shared living expenses?
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?
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1 Replies
DustinTS
New Member
Jun 3, 2019 12:02:56 PM
Here is some information that might be helpful for you.
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.