Sharing living expenses with female friend

[JReality]

My female friend lives in my house in a separate room. She contributes around $300 per month in cash toward expenses, which is less than 25% of my minimum total monthly expenses (my expenses include condo fees and property taxes).

I am considering having her reimburse me by check rather than cash, so that there is solid proof that I am not supporting her in case the relationship does not work out. If I have her write me a check for $300 each month instead of paying by cash, I would like to know what she should write in the memo field to make sure it is not considered to be as rental income. I could have her write "utilities", but the utilities average around $350 per month. Am I only allowed to have her reimburse me for 50% of the utilities in order for such a reimbursement to not be construed as rental income, even though the utilites are only 25% of my total expenses? If I am only allowed to split each individual expense 50/50 with her (such as electricity, water, cable TV), then which expenses am I allowed to split besides utilities? Am I allowed to have her reimburse me for part of the condo maintanence fee too?

Thanks,

Jay

[shortbus]

What do you mean by "proof that I am not supporting her in case the relationship does not work out"? You're not married. You have no legal relationship, except maybe an implied tenancy. If you want to clarify that, write up an agreement saying she is your tenant at will, rent $300 per month.

[JETX]

Bottom line... her paying you ANYTHING as a condition of living there (verbal rental agreement) is in fact rental income. You should be reporting it as such. I doubt that any RESPONSIBLE members of this forum will help you to commit tax fraud by scheming to hide this income. Now, lets see who is irresponsible??

[JReality]

Okay it seems we have two responses:

Reply to first response:

I realize there is no legal relationship in NJ. I'm just wondering if she were to stay 10 or 20 years and there weren't proof she were paying something toward livng here....could she sue for palimony and what would be the likelyhood that she could win? I'm doubting this would happen, but I just want to make sure that she would have no case.

As for having a legal rental agreement, that would mean I'd have to go through an accounting nightmare of depreciating part of my property, wouldn't it?

Reply to 2nd response: So let me get this straight: If I share some of my expenses (such as half the heat or electric bill) with her is this really rent?

Jay

[LdiJ]

Her sharing the living expenses of the home does not necessarily translate into "rent" as reportable income.

You are also WAY too paranoid.

[Snipes5]

So... are you providing housing for her in return for her um, "services"?

And yes, you are way too paranoid.

[JReality]

<<So... are you providing housing for her in return for her um, "services"?>>

Maybe she pays me for "services"

<<And yes, you are way too paranoid.>>

Yes, I am paranoid, but I have the crazy world we live in to thank for that.

Jay