I bought a house in October 2017. Since then, my brother has been living with me. He paid rent all of 2018 (300 per month.) Is that something he or I should claim/report?

[sherfeyj]

I want to make sure neither one of us is getting screwed, but also don't want to risk getting audited.

[CarolynM · Accepted solution]

No.

You do not need to report because, generally, renting property to family member is for less than the fair-rental-value may be considered personal use of a property. If your brother did not pay fair market value, which is highly unlikely if he had access to the entire house, it is not income to you.

He does not need to report because rent is considered a personal expense, and therefore, not a tax deduction.