How do my boyfriend and I file taxes, I own the home & he pays me rent?

Does that effect how much I get back, by claiming he's paying me rent?

Update:

We live together and share all expenses, but I'm the onlyone on the loan.

8 Answers

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  • Gem
    Lv 7
    1 decade ago
    Best Answer

    First, your boyfriend cannot claim a federal exemption for his payment of rent, and many states offer no exemptions either.

    So unless your state will offer him a sizeable exemption for a portion of his rent it seems silly to worry about this.

    As you two are co-habitating, the IRS is not concerned about his paying you for room & board.

    By claiming the rent and part of the property as a commercial operation you could be opening yourself up to local rental unit laws, additional tax income and a huge pain in the butt when you sell the house (as you have to "recapture" any depreciation you claim on taxes). Not to mention that you will have to figure what part of your home & mortgage interest and taxes are commercial (higher rate btw) and what part is residential.

    This is what I would do, have your boyfriend get his taxes figured and see how much of a difference claiming the rental payments makes. Again, he can't claim on federal and for state it will ony be a small portion.

    Then offer to either reduce his "rent" by that amount or cut him a check.

  • Judy
    Lv 7
    1 decade ago

    If hw is paying you rent then you'd need to claim that as income, and your tax return gets a lot more complicated. Maybe you could set it up so that he pays some other expenses like utilities or food, whatever comes out the same - then you're just sharing expenses and there isn't a question of whether it's taxable income to you, it wouldn't be.

  • 1 decade ago

    Think carefully. Are you sharing expenses or is he paying you rent? It makes a big difference. If you're renting to him, you file a Schedule E and claim the rental income. If, instead, you're sharing household expenses, maybe not.

    You'd both file single as presumably you're both employed and not married to anyone else.

    Source(s): irs.gov rental income
  • Anonymous
    1 decade ago

    You will have to claim the money that he pays you rent. Then you claim your home interest. He can claim paying rent. I would recommend finding which would have the better gain over all between him not claiming rent and you not recognizing that money... or the other way around. Whichever is better, split the difference.l

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  • 1 decade ago

    Chatspla gave the correct answer. You have to look at the facts and circumstances.

    If you and your boyfriend are cohabitating, you do not have a landlord-tennent relationship. He would merely be helping you with the household expenses. There would be no reportable income and expenses.

  • Anonymous
    1 decade ago

    His rent is considered income for you and must be claimed as such. You get the deduction for mortgage interest and owning a home.

    He gets the deduction for rental. He might also qualify for homestead credit and should look into that.

  • Tim
    Lv 7
    1 decade ago

    You need to claim his rent as income and then deduct the expenses invooved with renting him his portion.

  • Anonymous
    1 decade ago

    don't record the rent - no one will know - you each have to file as single

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