Hugh wrote:

- quote -

You don't report rental income or not for profit income
unless you actually collect the income.

How much rent one pays has no bearing on SSA benefits. How
much rent you pay may have an effect on other types of state
and/or federal welfare payments as well as state tax
rebates. Many states provide property tax rebates to both
homeowners as well as renters. If your parents are
reporting they pay $6000 per annum for rent in order to
receive some support payment or rebate, they are "cheats."

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I have another tax question and hope some one can help me:

I have a condo that I don't live in currently because I am
working overseas. I let my parents live there free of rent.
They kinda take care of the place for me. Howerver, each
year when my dad applies for social security and government
assistance, he reported that his and my mom's rent is $500
per month. Because of the rent, my parents is getting a
little more moeny per month, so they believe.

Am I obligated to report this rent as income on my tax
return? If I should report it, do I report it on line 21 of
1040 as not-for-profit rent or on Schedule E 2?

Thanks,
Hugh

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >