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Tax Law (Questions About Taxes)/rental income from a relative living with us


Do we have to claim the money given to us as rent by a relative, if he was living in our primary residence with us for part of 2012?  If we do, where should we enter it on the 1040?


It depends on what the money was for. Was it a gift and under $13,000? If so, then no.

On the other hand, if the money was for rent, i.e. use of part of your home, then yes, it is reportable as income.

On the third hand, if the money was simply a reimbursement for expenses you paid on the relative's behalf that were not deductible expenses by you on your tax return (like utilities, food, etc) then the money is not considered income.

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Tax Law (Questions About Taxes)

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Bruce W. Tyler, EA


I can answer questions with regard to the following: Preparation/Tax Law regarding Individual Income Tax (IRS and California), Audit Representation/IRS Procedures of personal and corporate income tax including appeals, IRS Collection procedures for individuals, partnerships and corporations, Offers-in-Compromise, Installment Payment Plans, Penalty Abatement,Income from Cancellation of Debt. Heavy experience with Public Safety (i.e. Firefighters, Police Officers, Correctional Officers, etc) as well as medical industry.


21 years in tax preparation and representation

National Association of Enrolled Agents

4 years of accounting at Woodbury University/UCLA Extension

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