Paying a friend rent, can I claim that on my taxes?

Paying a friend rent, can I claim that on my taxes?

Postby daley7 » Wed Jan 19, 2011 4:03 pm

I live with a friend and give him $100 a week in rent for the past 18 months... can I claim that on my taxes this year?

And can/does he have to claim me as a renter?
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Paying a friend rent, can I claim that on my taxes?

Postby maro » Wed Jan 19, 2011 4:06 pm

yes
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Paying a friend rent, can I claim that on my taxes?

Postby bhreac46 » Wed Jan 19, 2011 4:12 pm

On your federal taxes, no, it is not deductible. Sorry.
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Paying a friend rent, can I claim that on my taxes?

Postby amyas » Wed Jan 19, 2011 4:16 pm

Rent cannot ber "claimed" on a federal tax return. Some states have renter's tax credits on their state tax returns.

Your friend doesn't "claim you." He/she does have to declare the rental income, however.
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Paying a friend rent, can I claim that on my taxes?

Postby jonathon53 » Wed Jan 19, 2011 4:17 pm

Rent cannot ber "claimed" on a federal tax return. Some states have renter's tax credits on their state tax returns.

Your friend doesn't "claim you." He/she does have to declare the rental income, however.
usually on the state theres a line for rent credits, not federal tho
your friend dont need to claim that ,just deduct what you pay off his rent, thats all
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Paying a friend rent, can I claim that on my taxes?

Postby aiden30 » Wed Jan 19, 2011 4:21 pm

You can not claim a deduction for personal rent on your tax return.

I assume that the friend has signed a contract as the lessee and that you are not named as a co-lessee.

Your friend is a sub-leaser and might actually be required to file a schedule E on his tax return however I would take the position that since his income/cost and/or expense would all be $5200 then I'd probably not do anything with it depending upon your relationship and how much he is paying for rent and utilities.

His income is known but his expenses are highly debatable.
Floor space as measured by square feet. What percentage is common area and private area to each?
How much time is each person there?
Does he supply furniture used by you? TV? kitchen stuff or appliances? Are you supplying these things?
it could go a long ways beyond these questions.

Under audit I am sure that the IRS would not allow him to suffer a financial loss because to do so would allow him to write off his own personal living expenses. He could probably show income but not be allowed a loss.

By the way, if you have had a falling out with the friend the IRS is not an instrument of petty revenge. They take steps to insure that they are not used as a petty revenge instrument.

One more thing; it is the friends problem not yours. This has probably gone to tax court in some case that I am unaware of. I've never had this question come up with one of my clients in doing returns for over 20 years; your friend has an interesting scenario. I'll check back and see what others think; don't take this answer as the final answer. Also he should get his own tax preparer and ask about this in a place where there can be two way conversation to get the facts out.

You have a really good question.
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Paying a friend rent, can I claim that on my taxes?

Postby kirby86 » Wed Jan 19, 2011 4:27 pm

You cannot claim your rent on your return (no renter can...credits are only to home owners).

The tax interview DOES ask, however, if you've received rent payments from anyone, so whether or not your friend does this, it's not my business.

They *should* be, but he may be taking your portion and putting it on utilities, too...so it may be "rent" to you, but not to him, if that makes sense.
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