my mother lives with us full time, files her own taxes, pays us rent, and gives us a 1099-misc. Schedual E does not seem to allow for us living in our home 365 days a year and my mother also living in our home and paying rent for 365 days a year. This money is already over an above the allowable tax free gift a parent can give a child. I was hoping to deduct 1/3 of our household expenses to offset this 1099-misc rental income. what can I do? how do I file? thanks
USA 1099-misc rent from live in mother
- Thread starter bobbob
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On the program we use at work there is a field for "multi-occupancy" including when the taxpayer and renter occupies it.
The instructions for Schedule E is here: https://www.irs.gov/pub/irs-pdf/i1040se.pdf
Pages E-5 and E-6 discusses your situation to some degree.
Now, when we do Office in Home for people, we take take a percentage of their utilities, rent, etc. and apply that to the Office in Home page. In example, a 60 square foot room in a 1000 square foot house means 6% of the utilities and stuff can be deducted on the Office in Home page. If I am reading the Schedule E instructions correctly, I would like to assume you can use that same method on your Schedule E.
I figure that will primarily apply to her rooms, such as the bedroom. Joint use rooms like the kitchen and washrooms, I don't know. Definitely bring it up to your tax preparer or find a good one you can do a consultation with.
The instructions for Schedule E is here: https://www.irs.gov/pub/irs-pdf/i1040se.pdf
Pages E-5 and E-6 discusses your situation to some degree.
Now, when we do Office in Home for people, we take take a percentage of their utilities, rent, etc. and apply that to the Office in Home page. In example, a 60 square foot room in a 1000 square foot house means 6% of the utilities and stuff can be deducted on the Office in Home page. If I am reading the Schedule E instructions correctly, I would like to assume you can use that same method on your Schedule E.
I figure that will primarily apply to her rooms, such as the bedroom. Joint use rooms like the kitchen and washrooms, I don't know. Definitely bring it up to your tax preparer or find a good one you can do a consultation with.