Hi, Is it legal to pass the landlord's utilities to the tenant. Let's say a tenant stays rent free and pays the utilities instead. Both the landlord and tenant lives in the same home. The name of the utilities are under the landlord's name. thanks
Hi Stu Jermaine here, Stu that is not called a tenant that is called your buddy staying with you and pitching in by paying the utilities.
Nobody stay for free(ooouuu I hate even saying that word,,, free) but what you should do is have your "buddy" pay you and you pay the utilities
Haha thanks Jermaine, if my "buddy" pays me directly and I pay the utility company, isn't that considered rental income?
FYI the annual gift amount is $14,000
Someone an give you $1,166 a month as a figt.
When my husband leaves for deployment I plan on having roommates. I plan on declaring the rental income. Our house is not expensive enough to claim on our taxes because our standard deduction is hire than our itemized potential. If you have roommates you can deduct the part of your house they use and the common area by there use. This lets you help reduce the income. It also adds income to your taxes if you need it for the next house. I also like staying above board. :)
If you invite someone to share a house with you and they become a problem for you, better have a plan in place. A housemate who decides not to follow the rules and also refuses to leave may need to be evicted. Whether or not you have a written agreement in place. Eviction can be painful and expensive.
Years ago, I had great success in sub-renting rooms in a house that I rented from a landlord. Best to have all agreements in writing. What Elizabeth Colegrove Are you the owner of the house? Or are you a renter who is sharing the house with the other person? That makes a difference. If it is a casual situation of a friend staying with you and helping pay utilities in your own house, instead of a formal rental situation, you can count the money given to you for the utilities as a "gift in appreciation" for being able to stay in the house. Just make sure the gift does not exceed the annual $14,000 threshold, or then you would need to declare it as income.
Marcia Maynard, Fischer Properties | Podcast Guest on Show #83
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