My parents live in Utah. I live in Colorado. They bought a house for my sister to live in (in Utah) and a receive a rent allowance from Carbon County, UT. My father died a few years ago and my mother was concerned that if she died, the rent assistance would be lost. She asked the county to make a change send the money to me which they did. I auto deposit the money in a savings account from which the mortgage and upkeep of the house are paid. I don't own the house so I cannot deduct any expenses from income I now receive from the County reported on a 1099 misc as rental income. How can I reassign this rental income back to my mother?
Sounds like you mother attempted to evade the rent allowance rules and now you are stuck with the bill. If you receive the money then it will be taxable to you. Once the money is sent to you it is your money. If you give it to your mother then is is a non-reportable gift.
That is what happens when people try to work around the rules without first looking at the tax consequences.
What are these rent allowance rules you speak of? Never heard of that.
@Mickey1425 wrote:
What are these rent allowance rules you speak of? Never heard of that.
I have no idea - you are that one that implied it..."concerned that if she died, the rent assistance would be lost".
How would to be lost if there was no such rule? That is a question to ask the rent assistance administrator.
You should have found out if her concerns were valid before you agreed to be responsible for the tax on the payments.