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Old 07-02-2003, 04:14 PM
Gerome
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Default Re: Roommate income

Thanks for all your responses. Whew.

G

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Old 06-30-2003, 06:23 AM
John F.
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Default Re: Roommate income

gerometry[at]yahoo.com (Gerome) wrote:

- quote -

> My "girlfriend" lived with me for six years, until about a
> year ago. The "girlfriend" is in quotes because we mostly
> had a roommates relationship. She is the mother of my
> daughter, and by living at opposite ends of the house, we
> could be our daughter's parents during those six years.
> She moved out about a year ago, taking custody of our
> daughter. I pay child support.
> During the six years, she contributed about $25,000 per year
> toward unspecified shared household expenses: the house,
> utilities, food, baby-sitters. It's my house, and she was
> never on the title, and we were never married. She paid for
> all her other expenses separately: her clothes, car,
> entertainment, etc.
> Now she is threatening to turn me into the IRS for failing
> to declare her $25,000 payments as income. She wants me to
> refund to her, a third of what she paid, else she'll drop a
> dime to the IRS. She says "You can pay me, and benefit your
> daughter, or you can pay the IRS."
> The questions:
> Should I have been declaring her $25,000/year as income?


No. Her contribution to household expenses is not taxable
income to you.

- quote -

> Would I have an IRS liability if she called them?
> Penalties? Interest?


In the absence of unreported taxable income, no.

- quote -

> Is this the kind of thing the IRS cares about and would
> pursue?


There is nothing to pursue.

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