Rent alternatives

[pxconti]

State of FL
hi, If I move to a family or friend's house room or basement, and instead of paying rent, I make a payment directly to the bank of their mortgage,
do they have to file that as taxable income?

 

[PayrollHRGuy]

Yes, it doesn't help them a bit and it could cause you problems.

Just formalize the rental and terms in a lease or rental agreement and pay them per the terms of the agreement.

 

[pxconti]

It's my mom, and she refuses any money, and she does not want any contract or anything. I just want to give her 50 or 100 bucks to contribute some way. I heard that paying directly to the mortgage did not count as income, that's why I asked. If I'm wrong, is there any other way?

 

[PayrollHRGuy]

Giving her income no matter if it is paid on her mortgage or directly to her is income. In fact, paying it on the mortgage creates a paper trail she clearly doesn't want.

Just stick your $50 - $100 cash in her purse from time to time or take the grocery list and go shopping.

 

[LdiJ]

It's my mom, and she refuses any money, and she does not want any contract or anything. I just want to give her 50 or 100 bucks to contribute some way. I heard that paying directly to the mortgage did not count as income, that's why I asked. If I'm wrong, is there any other way?

Then use that 50-100 dollars to buy groceries and sundries for the house. Or even other stuff you know your mom needs.

 

[Dandy Don]

The mortgage company has no contract with you, so if you were to make a payment to them, that would be the wrong thing to do. They could keep it without applying the money to her mortgage, or they might return it to you.

 

[justalayman]

Make sure your gifts to your mother on Christmas, her birthday, mother’s day, and any other holiday it would be appropriate to give your mother a gift of money equal the total amount you believe you are beholding to your mother for. Gifts (in general) are not taxable income.

 

[adjusterjack]

I heard that paying directly to the mortgage did not count as income,

If it is construed as a gift, that's correct. But it's too close to rent, on record, for comfort.

As a practical matter, you can give gifts any time you want, in any amount up to the annual gift exclusion which I think is $15,000 now, and nobody will say boo.

Avoid paying mortgage or utilities.

Buying groceries or other stuff for the house are good ideas. Or put gas in her car. Or save up and get her a TV, stereo, smart phone. The ideas are endless.

 

[not2cleverRed]

It's my mom, and she refuses any money, and she does not want any contract or anything. I just want to give her 50 or 100 bucks to contribute some way. I heard that paying directly to the mortgage did not count as income, that's why I asked. If I'm wrong, is there any other way?

Ways you can contribute using your money:
1) You can buy groceries and household supplies on the way home from work.
2) You can put a savings jar for replacements/upgrades. (Like, if she needs a new fridge.)
3) You can pay to have work done that neither of you are adept at.

 

[bcr229]

1) You can buy groceries and household supplies on the way home from work.

And pick up some gift cards for Amazon, department stores that your Mom likes, restaurants, etc. while you're there.

 

[aldaron]

You can give up to $11.5 million in a lifetime to anyone you wish tax free, just fill out the appropriate IRS forms. If you're married you can double that.