GrandmaLewis
Junior Member
What is the name of your state (only U.S. law)? Texas
My kids receive Social Security Retirement Benefits because their father is retired. As a CPA, I have a tendency to over-analyze anything financial so I need someone to answer a few questions regarding allocation of shared household expenses and what is allowable and what is not allowable as expenses for the representative payee report.
1. Since the mortgage is in my name and includes principal, interest and escrow is it allowable to just divide the mortgage amount by four (the number of people living in the house) and use that amount as rent expense for each child. (The mortgage amount is much less than rent for a comparable house would be)
2. Am I correct that I would do the same for utility expenses? Would internet expense count as a utility expense? The children are in middle and high school and use the internet for school research, to check grades, tutorials, email from teachers etc.
3. The kids each have a mobile phone which is used somewhat for school related text messages. Text messages from the cheer coach, soccer coach and orchestra teacher. Can I allocate the specific cost for their phones and a equal portion of the plan. Trust me when I say they use the most data.
and they call this entertainment
3. Last year, before the kids starting receiving SS retirement benefits, we replaced the air conditioning system in the house and financed it for 5 years. Would an allocation of this payment be an allowable expense? They are certainly the beneficiary of the A/C system and the lower utility expense.
4. We need to replace the carpeting in the living room, my son's bedroom and the master bedroom. Can I allocate the cost for each room by square foot and charge each child for a portion of the living room and my son for the cost for his bedroom?
5.Food expenses--Do I just divide the total cost of each grocery receipt by four or do I need to identify what was spent specifically for each child; i.e. he likes Oreo's and she likes Pop-tarts. What about food eaten away from home? Do I need to specifically allocate each person's cost or just divide by four? What if they have friends with them and we go out to eat? Can I allocate the cost of the friend's meal to the child whose friend was with us?
Thanks so much
Grandma Lewis
My kids receive Social Security Retirement Benefits because their father is retired. As a CPA, I have a tendency to over-analyze anything financial so I need someone to answer a few questions regarding allocation of shared household expenses and what is allowable and what is not allowable as expenses for the representative payee report.
1. Since the mortgage is in my name and includes principal, interest and escrow is it allowable to just divide the mortgage amount by four (the number of people living in the house) and use that amount as rent expense for each child. (The mortgage amount is much less than rent for a comparable house would be)
2. Am I correct that I would do the same for utility expenses? Would internet expense count as a utility expense? The children are in middle and high school and use the internet for school research, to check grades, tutorials, email from teachers etc.
3. The kids each have a mobile phone which is used somewhat for school related text messages. Text messages from the cheer coach, soccer coach and orchestra teacher. Can I allocate the specific cost for their phones and a equal portion of the plan. Trust me when I say they use the most data.
and they call this entertainment 3. Last year, before the kids starting receiving SS retirement benefits, we replaced the air conditioning system in the house and financed it for 5 years. Would an allocation of this payment be an allowable expense? They are certainly the beneficiary of the A/C system and the lower utility expense.
4. We need to replace the carpeting in the living room, my son's bedroom and the master bedroom. Can I allocate the cost for each room by square foot and charge each child for a portion of the living room and my son for the cost for his bedroom?
5.Food expenses--Do I just divide the total cost of each grocery receipt by four or do I need to identify what was spent specifically for each child; i.e. he likes Oreo's and she likes Pop-tarts. What about food eaten away from home? Do I need to specifically allocate each person's cost or just divide by four? What if they have friends with them and we go out to eat? Can I allocate the cost of the friend's meal to the child whose friend was with us?
Thanks so much
Grandma Lewis
