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Financial Planning / Tax Strategies


Subject:  Re: Taxes and roommates Date:  6/17/2013  7:24 PM
Author:  foo1bar Number:  118704 of 127753

Yep. Although I still prefer Bill's suggestion of you renting directly to the other roommates. But if you want to go this way, your son would report the income and expenses on Schedule E.

I would look at landlord-tenant law for the area.

Renting a room in your home to someone *usually* gives you a lot more leeway on landlord-tenant law than renting a complete unit.
ex. I can kick a boarder out of my spare bedroom for basically no reason without worrying much about losing a lawsuit. But if I want to kick a renter out of the other half of a duplex, I need to make sure I follow all the appropriate laws for evicting a tenant.

Hopefully there wouldn't be any reason to go down that path - but I'd make sure you have a clear understanding of the landlord/tenant laws and make sure it's clear ahead of time whether a roommate is a renter or a boarder. Then if you have to get someone out because of either they're not paying, or they're making your son feel unsafe, you know what your son can/cannot do and what you can/cannot do.
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