Tax Law (Questions About Taxes)/tax liability

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Question
We are senior citizens who have taken in our 46 yo former
foster dtr. who came to us from west coast. She is recovering
from a breakdown for which she was hospitalized for 2 weeks.
This happened after spouse asked for divorce which still is
not in effect. She will need to verify her expenses and we
wondered what if anything we can charge her without incurring
tax liability for ourselves yet satisfying her need for
shelter, board and 24 hr. care. She was with us for 14 yrs up
until her marriage.

Answer
Patricia,

I did answer the part about how much rent your can charge with no tax consequences. "OUT OF POCKET COSTS."  Any other amount you charge for rent is reportable.  If you are not charging fair rental value it is a rental not for profit and reported on line 21 of form 1040.

John Stancil, CPA


Thanks for your question.

If she pays you basically for your out of pocket costs for meals, personal items, etc. You will not have to repor it on your tax return.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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