What are potential pitfalls of having friend share my home to help with expenses? Can I avoid having this money counted as income, for taxes?Diane
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What are potential pitfalls of having friend share my home to help with expenses? Can I avoid having this money counted as income, for taxes?Diane
Asked on May 14, 2009 under Real Estate Law, Pennsylvania
Answers:
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
technically, if you are receiving money from people you live with that are friends, not family members, you are receiving ordinary income that is taxable (i.e. rental income). There is no real way to change the naute of th benefit they are providing to it outside the rules of tax law.
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