Question on renting out a room in my home.


J

Jason

If I rent out 2 rooms in my home for $400 a month each how
is this income reported and taxed?

Another question:

If I was to allow someone to rent a room for free in
exchange for paying for the Utilities (Electric,water,
cable, ect.) Which totals about $500 per month would I need
to pay taxes on that since I'm not really recieving
anything?

Thanks

J
 
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M

Missy Doyle

If I rent out 2 rooms in my home for $400 a month each how
is this income reported and taxed?

Another question:

If I was to allow someone to rent a room for free in
exchange for paying for the Utilities (Electric,water,
cable, ect.) Which totals about $500 per month would I need
to pay taxes on that since I'm not really recieving
anything?
For this year, at least, go to a tax professional. You are
talking depreciation, etc.

Missy Doyle
 
A

Arthur L. Rubin

Jason said:
If I rent out 2 rooms in my home for $400 a month each how
is this income reported and taxed?
Schedule E. You should also note relevant expenses
and depreciation.
Another question:

If I was to allow someone to rent a room for free in
exchange for paying for the Utilities (Electric,water,
cable, ect.) Which totals about $500 per month would I need
to pay taxes on that since I'm not really recieving
anything?
Yes. It's still reportable.
 
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D

David Woods

Jason said:
If I rent out 2 rooms in my home for $400 a month each how
is this income reported and taxed?
As rental income.
Another question:

If I was to allow someone to rent a room for free in
exchange for paying for the Utilities (Electric,water,
cable, ect.) Which totals about $500 per month would I need
to pay taxes on that since I'm not really recieving
anything?
You're receiving the benefit of having someone else pay your
utilities, which is taxable income.
 

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