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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2828
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I am retired in Ohio----If my daughter moves in & gives me

Customer Question

I am retired in Ohio----If my daughter moves in & gives me $200,00/mo. for rent how do I claim this? Do I need a special form?--I now file short form
JA: The Accountant will know how to help. Please tell me more, so we can help you best. Is there anything else important you think the Accountant should know?
Customer: Not that I know of---just don't know how to claim & if I can still file short form
Submitted: 1 month ago.
Category: Tax
Expert:  Barbara replied 1 month ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

If your daughter is living in your primary home with you and you are charging her rent at an amount below the fair market rental value, then the home is not considered a rental unit. You will not need to report the rental income, but you will also be unable to deduct any expenses. You only have to report your rental income if your property is rented at fair market value for at least 15 days of the year. Any day you use the home for personal purposes and/or do not charge rent equal to the fair market value is counted as a personal day and not a rental day. Fair market rental value is the amount that would be charged to an unrelated person.

Based on the information you provided and assuming the $200.00/month is below the fair market value, you will not report the income nor deduct expenses and can continue to use the short form.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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