House burns down, renting from parent,

[WITAXLADY]

Renting from parent - a trailer home and the insurance is paying that - but does the parent have to claim the rental income?

My take is of course -But Is there an exemption? special provision?

I can't think of any - Parent could pay the utilities - and that would be an expense.. some depreciation, furnishings..

But it would be income..

Thank you for any advice and clarity.

D

[DANRVAN]

13 hours ago, WITAXLADY said:

Parent could pay the utilities - and that would be an expense.. some depreciation, furnishings..

If parents are receiving rent, then yes income.

Are they paying fmv rent?  Otherwise deductions are limited.

[schirallicpa]

Why isn't it reimbursement of expense like most insurance is?  

 

[Lee B]

I believe that would a reimbursement of the children's expenses.

The recipient of the rent, a motel or an landlord would have income.

[DANRVAN]

7 hours ago, schirallicpa said:

Why isn't it reimbursement of expense like most insurance is?  

To the child yes, but to the "landlord parent" it would be income.

[schirallicpa]

16 hours ago, DANRVAN said:

To the child yes, but to the "landlord parent" it would be income.

So the question is - who is getting paid.

 

[DANRVAN]

8 hours ago, schirallicpa said:

So the question is - who is getting paid.

OP indicates parent is paid rent by insurance company.

 

On 6/8/2022 at 8:09 PM, WITAXLADY said:

Renting from parent - a trailer home and the insurance is paying that