I intend to claim my elderly mother as a dependent this year (+ amend 2 previous years’ tax returns
, indicating myself Head of Household). My mother makes a nominal social security income (no other income source), and meets the “qualifying relative” IRS guidelines. I maintain the entire household repairs, groceries, utilities and pay her extensive medical expenses
etc. I've had my mother set aside the vast majority of her social security income as savings (which can be documented in the event of an audit).
Making matters more complex, I have been in a foreclosure lawsuit, regarding our home for the last 2 ½ years. The property is a legal 2 family and my mother lives rent free in her own 1 bedroom apartment downstairs. As I am in litigation and not making mortgage payments, is it possible for me to still include the “fair rental value of the home” on line 6b of the “worksheet determining support”?
Do the IRS rules
allowed to claim the comparable rental value of a 1 bedroom apartment, in my area, as part of her support in this scenario?
Any feedback is helpful. Thank You