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Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1408
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
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If an unmarried couple reside together and she charges him

Customer Question

If an unmarried couple reside together and she charges him rent does she have to claim it as income?
Submitted: 5 years ago.
Category: Tax
Expert:  Jax Tax replied 5 years ago.

Jax Tax : If she owns the home, yes. Rent must be reported as income. Depreciation is not allowed ansld associated expenses cannot exceed the rent. It is reported on sch C.
Jax Tax : If the home is not owned, then it is simply a sharing of expenses.
JACUSTOMER-muoiqamv- :

thank you, what happens if i don't report it?

Jax Tax : Nothing really, but you should. If by chance the IRS becomes aware, you will be penalized bit first given a chance to provide associated expenses.
JACUSTOMER-muoiqamv- :

whats associated expenses?

Jax Tax : Interest, repairs, insurance etc. Expenses related to the home. You would expense a portion of these equal to the protion of the home that is rented. That could be based on square feet. 50/50 or any ration that makes economic sense.

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