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    Renting & Real Estate


    Renting a room in home VS sharing my home?

    Is there a tax or income difference with renting out a room in my home or having roomates situation and share expenses in my home? Are the payments considered income? I have read a few replies regarding is the rent considered income and taxable and have read totally opposite answers. Does someone know for sure the USA/federal law regarding this question? Thank you
    a few seconds ago 2 Answers

    Best Answer

    Chosen by Asker
    . If you receive more than $599 per year from a non-family member, you need to tell the IRS. Usually that will be counted as ordinary income and you will pay tax. No difference between renting out a room or having roommates ... if you are the home owner.
    a few seconds ago

    Other Answers

    • Yes, you must report the income (rent) regardless of whether you call it a roommate or a tenant, per the law, they are one and the same. You are also allowed to report expenses. Rental income and expenses are reported on Form 1040, Schedule E. http://www.irs.gov/taxtopics/tc414.html http://www.irs.gov/businesses/small/industries/article/0,,id=98895,00.html

      by Trouble - a day ago

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