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Hi,
If I have a share-room-mate in my principal residence (which I own), are the room-mate payments considered taxable income?? I assume so but just want to double check.
Hi,
If I have a share-room-mate in my principal residence (which I own), are the room-mate payments considered taxable income?? I assume so but just want to double check.
Since you own the home, yes, I would characterize it as taxable income. However, it depends a great deal on how things are structured. If he is paying 1/2 of the utilities, which would logically be his own responsibility, that really isn't "rent". If he is paying for 1/2 of the groceries, which again, would be his expense, it really isn't rent. Rent is what he pays for the right to occupy specific space.
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