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The question is larger than just rent--if I spend $100 on groceries and she gives me $50 for her half is that taxable income? How do we determine where the line is? If she gives me a set amount each month, only part of that goes toward actually paying the mortgage. Other parts go towards paying for things that have nothing to
do with the actual house.

The $50 toward groceries would simply be a reimbursement of expenses paid on her behalf. Since the monthly amount is not set (as rent usually is), I would tend to go with all the funds she pays you are reimbursements of expenses shared by the two of you. I am assuming that the amount she contributes does not exceed 1/2 of the actual household expenses for the dwelling (mortgage, insurance, property taxes, R&M, etc.). Probably isn't even 1/2. Additionally, I would consider all money first toward reimbursement of expenses not related to the property that you pay for before she gives you funds (food, utilities, telephone, etc.). If there is really anything left over at that point, you could construe it as rent, or as a gift.
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