Reporting Rent Income to the IRS and paying taxes?????? on it

[collegegirl5503]

What is the name of your state? AL
Someone I know is buying a 3 bedroom, 2 bath house and is renting out 2 of the bedrooms ( whenever she can find someone to rent them) and she is living in the master bedroom there. Is she required to report the money she received for rent to the IRS and pay taxes on it?? Her name is the only one on the mortgage and she does not sign a lease with her "renters". Also is she required to give them a receipt for the money that they pay her for rent???


Thanks in advance

 

[Snipes5]

Yes, it's taxable, but she can also take a deduction for expenses against it.

Yes, she should give them receipts, that's always a good business practice.

Snipes

 

[abezon]

Receipts are also required by state law any time a tenant requests one.