Who reports this rental income?

[edessabr]

Our home has an in-law apartment that we rent out and report the income on our taxes. With us lives our only child who files his own taxes. Last year we transferred the title to the house to our son and we retained the right to live here as long as we are alive. Nothing else changed i.e. the mortgage, utilities, property taxes etc. are still in our name and we pay them. Can we continue to report the income from the apartment on our taxes or should our son report it?

[GeorgeM777 · Accepted solution]

No, as your son is now the legal owner of your former home, your son should report the rental income.  Additionally, as the new owner of the home, you might need to consider the gift tax implications of paying the mortgage, utilities, property taxes, etc. because your son gets the benefit of you paying these expenses for a house that your son now owns.  

You may also want to update the lender of the mortgage now that title of the home has passed to your son.  

@edessabr