Rental Expenses when renter is a family member?

Forum|Forum|2 years ago
April 7, 2024
1 reply
7 views

Hello Community,

My customer's mother had a debilitating stroke which necessitated a permanent move into her son's home. She does pay rent, and they have the documentation for that. Would he be eligible for a portion of any of the home expenses in that situation as a rental income expense? Or not, since she is family?

Thank you,

Dawn

ProSeries Professional

This topic has been closed for replies.

dascpa

Level 11

Relationship matters if it's non-FMV rent. If it is FMV rent then it is treated as any other normal rental of a portion of a home. The landlord should have a lease. If the mom cannot sign then the POA should sign. Many people rent out a room or rooms to others so it is not uncommon. Just make sure all is above-board.

sjrcpa

Level 15

If she had a debilitating stroke, she probably is not having exclusive use of part of the home. Family is taking care of her.

Expenses for use of common areas are not deductible.

The more I know the more I don’t know.

Sign up

Login with SSO

Let's get you signed in

Login with SSO