• Thursday, October 29th, 2009

income taxes foreclosure

Do I need to claim rental income when a family member moves into my house and pays me “rent”?

My son and his family moved into my house with me when he lost his house in foreclosure. We refinished the basement and I moved in there. He has been paying $1400/month to me to help with household expenses, repairs, and property taxes. I am not really “renting” for profit. He and his family would not have anywhere to live and I would not be able to keep the house without his help. I am retired and have small income (about $20,000/yr) from a part time job. Thank you.

You’re probably supposed to, but I don’t think it’s a big deal not to. When it’s family moving in, there are no binding contracts, etc… you’re helping out a family member. I think doing it ‘under the table’ is fine. Like you said, your home is not an investment property used as a rental, you just have family living with you helping with your expenses. Good luck!

income taxes foreclosure

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