imjulier Posted February 19, 2009 Report Posted February 19, 2009 Help. I think I saw this topic here not long ago but don't recall. I have a client who's dad bought her house in 2008 becasue she could no longer afford it and now she is renting from him about $500 below FMV....even in this economy! I think it falls on him to report correctly on his tax return. My question is if this should come into play in determining if she can claim HOH which says taxpayer has to pay more than 1/2 the cost of keeping up home. I don't think it should impact that but wanted some other opinions. Julie Quote
TAXBILLY Posted February 19, 2009 Report Posted February 19, 2009 Cost of keeping up the home is more than rent. Is the client paying for the utilities, food, etc? taxbilly Quote
RoyDaleOne Posted February 19, 2009 Report Posted February 19, 2009 You can treat the costs paid by the father as a gift and therefore she can qualify for HOH. Other complications aside. Quote
OldJack Posted February 20, 2009 Report Posted February 20, 2009 I think it falls on him to report correctly on his tax return. I am not sure what you mean by this comment. You could be implying that the dad should report the rent at FMV rather than what she paid him. If that is what you meant, I don't believe a landlord is required to report FMV as income instead of the actual rent received. Quote
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.