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Elderly parents living with us paying rent and my spouse is a caregiver - is it income?

Forum|Forum|3 years ago
April 2, 2023
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Hi,

We have elderly parents who:

are living in our house
pays us monthly "rent"
my spouse provides caregiver services to them (taking them to doctor offices, doing their laundry, etc) and is not able to work a full time job given their needing my spouse's day to day support
are not considered dependents in our tax return (given their income above the dependent threshold)

How should we treat the monthly "rent" in our tax return (rental income)? Is it considered a gift, given it is below the 2022 $16,000 threshold? I see this section in IRS' caregiver FAQ - does this mean I do not need to report this "rent"?:

I care for my parents in my home. My parents occasionally give me money to pay for their share of household expenses. Is this money taxable to me?

Answer:

An amount of money that your parents give you to offset their expenses isn't taxable to you. This amount is treated as support provided by your parents in determining whether your parents are your dependents.

Thanks!

Best answer by Bsch4477

You are just cost sharing. No reporting is necessary.

B

Bsch4477Answer

Employee

You are just cost sharing. No reporting is necessary.

X

xmasbaby0

Employee

I agree with Champ Bsch4477. You have family cost sharing which does not get entered on a tax return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**