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#1
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tax lawWhat is the name of your state? indiana if someone has lived in your home for years and helped with some payments of living expenses and voluntarily done work to the home and has had me on a joint bank account into which his and my money were deposited and from which all bills were paid, and had me take care of paying all of his bills can i be in trouble with the irs for not including this on my taxes. he was not actually paying rent and for the most part i was working and paying the mortgage and my other bills with my income Last edited by toomuchto; 08-15-2002 at 08:37 AM. |
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#2
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| This can be considered as Rental Not-For-Profit. Any expenses paid and the fair market value of work done toward your house is rental income to be reported on line 21 of form 1040. Your expenses for renting part of your house are deducted on line 22 of Schedule A. You cannot deduct more expenses than rental income. Pub 527 on [url]www.irs.gov[/url] explains this in detail. |
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#3
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| Is there anything I can do to rectify this situation without losing my home? |
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#4
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| A lover is not a tenant. You were not renting your house; you were cohabitating. Why would you think you were going to lose your home? Surely your expenses (mortgage interest, taxes, insurance, repairs, depreciation of house & contents, etc) would exceed your dubious "income"? Even if some overworked IRS auditor is foolish enough to step into your messy breakup, it would end up being a wash. Your expenses would cancel out almost all of your income and you would owe little, if any, tax. In fact, by the time you got around to adding in all your *other* miscellaneous deductions (tax prep fees, employment expenses, job search costs, union dues, etc.), you might find your itemized deductions actually went UP. You'd finish the audit with a refund! And your ex would have to pay self-employment taxes on the fair market value of the repairs he did to the home. Point this out to him the next time he threatens to "turn you in" to the IRS. Then laugh in his face.
__________________ This post does not constitute legal advice, nor does it create an attorney-client relationship. Postings are based only on the information provided and you should consult an attorney in your area before relying on information contained in this post. |
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