Mom pays me rent. Want payment to be valid for medicaid qualification. Should she issue me a 1099?

[tax-question-stacy]

My mom pays me $1500 rent.  I want it to qualify as a payment for when we need her to qualify for medicaid.  I use the money to help offset costs (grocery, utility, etc.)  Should she issue me a 1099 and should I report the amount as income on a Schedule E?

[MinhT1]

It depends. 

If you are renting to your mom at fair market value, then you should report the rental income (and expenses) on Schedule E.

However if you rent your property below fair market value, the IRS considers that you do not rent your property to make a profit. In this case, 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.

Mortgage interest and property taxes paid can be claimed in Schedule A as for your residence.

Please refer to this IRS document, especially the section on Not Rented for Profit on page 16 of this IRS publication on how to report income and expenses.

Your mom does not need to issue you a form 1099-MISC. This applies only for commercial rental.

[xmasbaby0]

And....since you are concerned with the possibility of Mom needing Medicaid at some point in the future, you should consult an elder law attorney now to explore some of the issues that may arise.  There is a five year lookback for folks who get Medicaid, so you will want clear records kept of her finances.   In many areas, there are legal goups who will give at least one session of legal advice to seniors.