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How do I claim rent as income?

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  • How do I claim rent as income?


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Answer #1 | 22/12 2013 20:36
you did not state why you wan to buy a 2nd home that is $ risky.........I can guide you but be very careful you can claim her income......
Answer #2 | 22/12 2013 20:45
You should declare it as rental income on IRS form 1040 or 1040A schedule E. You will pay income tax on it but you also will have some deductions. If you applied for a mortgage for your existing home recall they asked for copies of 2 year's income tax forms or the right to request them from the IRS, you signed a form 4506. also will need to pay state income tax on that income. When considering rental income lenders use 75% for qualifying purposes, not all $350 in order to allow for vacancy factor etc.
Answer #3 | 22/12 2013 21:19
As your girlfriends bear some proportion in rent and you get it so it is your income and you should give income tax
Answer #4 | 22/12 2013 22:35
Simply ad up how much she paid within the calendar year and put it in the appropriate box on your income tax return. By showing rental income it also allows you to make deductions for various repairs etc. just be sure to have all receipts.
Answer #5 | 23/12 2013 13:10
Discuss this with a lawyer.

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