is Rent an income?

[sara2010 2]

hello

I rent the portion of my home to my family.They pay me about $1000 a month for the rent.Is this counts as income?

[pushbrk 12,106]

hello

I rent the portion of my home to my family.They pay me about $1000 a month for the rent.Is this counts as income?

As I told you before, you'll need a tax preparer to help you declare this income on a tax return, so the applicable amount of "income" appears as part of the line 22 total. You are self employed and a landlord. This means "income" will be found on line 22 of a tax return. Period. So, file the tax return and see the number.

[Speedytax 3]

As I told you before, you'll need a tax preparer to help you declare this income on a tax return, so the applicable amount of "income" appears as part of the line 22 total. You are self employed and a landlord. This means "income" will be found on line 22 of a tax return. Period. So, file the tax return and see the number.

Yes Rental income is taxable, so it is considered income. But you have to include it on your federal tax return using a schedule E, and it is taxable, so you may have to pay up to $1200 federal income tax on $12,000 rental income. Just make sure you can actually prove that your family paid you for the rent.They should have cancelled checks made out to you for the entire year. To prove this isn't you faking income to try to prove income.And you have to own the house to claim it as income. You cann't rent a house, and then have them share rent with you and call it income to you.

Edited January 7, 2011 by Speedytax

[sara2010 2]

Yes Rental income is taxable, so it is considered income. But you have to include it on your federal tax return using a schedule E, and it is taxable, so you may have to pay up to $1200 federal income tax on $12,000 rental income. Just make sure you can actually prove that your family paid you for the rent.They should have cancelled checks made out to you for the entire year. To prove this isn't you faking income to try to prove income.And you have to own the house to claim it as income. You cann't rent a house, and then have them share rent with you and call it income to you.

Yes I own the home. So I just print the checks from bank that my family paid to me and take it with me? is this enough?

As I told you before, you'll need a tax preparer to help you declare this income on a tax return, so the applicable amount of "income" appears as part of the line 22 total. You are self employed and a landlord. This means "income" will be found on line 22 of a tax return. Period. So, file the tax return and see the number.

thanks you helped me alot.

[pushbrk 12,106]

Yes I own the home. So I just print the checks from bank that my family paid to me and take it with me? is this enough?

Just to be perfectly clear, NO! Us a tax return prepared by a competent tax preparer.