What is considered "rent"?

[Seafan]

What is the name of your state? Hawaii

I'm just curious as to the definition of "rent":

I'm buying a little house for my mom to live in (house is in Louisiana), since the rental market has gone nuts where she lives. I don't want her to be prey at her age to the whims of sometimes greedy and ruthless landlords--which just happened to her in the place she's lived for the past 13 years.

I'm buying it as a second home; my sibs and I will stay there when we go to visit. My brother and sister will help me out with the mortgage and taxes, and mom will help as she can. There will be NO profit involved; I'm not having her sign any sort of contract or anything.

Would this be considered "renting"--in other words, would I have to report what my sibs give me as income? I looked at the tax code online and it seems unclear to me. There is a provision I saw of "renting not for profit" but I'm still not sure where this falls.

Thanks for any insight into this.

 

[seniorjudge]

Q: Would this be considered "renting"--in other words, would I have to report what my sibs give me as income?

A: Sounds like income to me. Also, have you considered ma's tax liability in all this?



Stand by for tax experts (of which I am not one).

 

[Seafan]

Q: Would this be considered "renting"--in other words, would I have to report what my sibs give me as income?

A: Sounds like income to me. Also, have you considered ma's tax liability in all this?



Stand by for tax experts (of which I am not one).

Thanks--actually, I can't see what mom's tax liability could be at all. LA doesn't have a deduction for rent paid, unless being provided with a place to live could be considered income.

Duh. That's why I'm a nurse

 

[seniorjudge]

Ask your CPA.

But you're giving ma quite a substantial amount of money; there may be some tax liability.

 

[LdiJ]

What is the name of your state? Hawaii

I'm just curious as to the definition of "rent":

I'm buying a little house for my mom to live in (house is in Louisiana), since the rental market has gone nuts where she lives. I don't want her to be prey at her age to the whims of sometimes greedy and ruthless landlords--which just happened to her in the place she's lived for the past 13 years.

I'm buying it as a second home; my sibs and I will stay there when we go to visit. My brother and sister will help me out with the mortgage and taxes, and mom will help as she can. There will be NO profit involved; I'm not having her sign any sort of contract or anything.

Would this be considered "renting"--in other words, would I have to report what my sibs give me as income? I looked at the tax code online and it seems unclear to me. There is a provision I saw of "renting not for profit" but I'm still not sure where this falls.

Thanks for any insight into this.

I would not consider this to be a rental home. I would consider it to be a second family home. However, if your siblings are going to be helping you with the mortgage and real estate taxes then you should not take full deductions for those on your schedule A.

 

[Seafan]

I would not consider this to be a rental home. I would consider it to be a second family home. However, if your siblings are going to be helping you with the mortgage and real estate taxes then you should not take full deductions for those on your schedule A.

Thank you, LdiJ. I was starting to think I was venturing into "no good deed goes unpunished" land here.

 

[seniorjudge]

Thank you, LdiJ. I was starting to think I was venturing into "no good deed goes unpunished" land here.

No kidding.

But ... all questions boil down to money!

At least, that's the way it seems.