Is renting a room out in your apartment taxable income?

[miri]

I know renting out a room in a home you purchased is but what about if your renting a apartment and decide to rent out a room?

 

[Eli]

It probably legally is, but... seriously? No.

 

[miri]

It probably legally is, but... seriously? No.

so for it to not be taxable, we would have to put them on the apartment lease?

 

[PlasmaBomb]

In the UK it depends how much you rent it out for... if you make less than the threshold then you don't pay any tax.

 

[RaistlinZ]

Uh... you better make sure your landlord allows you to sub-let. Most do not, and if it violates your lease they have every right to kick you out.

But I believe in most cases rental income in any form is taxable. What you'd have to do is not have a paper trail of the rent money. Have them pay you in cash and use it as your regular spending cash for things like: groceries, gas money, clothes, going to the movies, etc. Never, ever deposit any of the money into your bank account - otherwise it looks like income. Oh, and you'd have to make sure your renter doesn't claim the amount paid in rent on their tax returns either.

Not that I've given this much though before or anything.

 

[nageov3t]

it's about a taxable as paying an employee at a store in cash.

 

[Bignate603]

I would think it depends. You could probably structure the rental agreement so that it is effectively you having a roommate. Even if one roommate collects money from the other people to pay the monthly rent he's not really getting any income out of it.

Of course, if you're charging the other guy enough that you're making more than your rent you should probably be paying taxes on it.

 

[miri]

I would think it depends. You could probably structure the rental agreement so that it is effectively you having a roommate. Even if one roommate collects money from the other people to pay the monthly rent he's not really getting any income out of it.

Of course, if you're charging the other guy enough that you're making more than your rent you should probably be paying taxes on it.

No, we are renting a 2 bedroom apartment for $1750 a month. We are thinking about renting the 2nd bedroom for $700 a month so we would still pay over $1000 a month in rent.

I think it may just be easier to add them onto the lease.

 

[nageov3t]

No, we are renting a 2 bedroom apartment for $1750 a month. We are thinking about renting the 2nd bedroom for $700 a month so we would still pay over $1000 a month in rent.

I think it may just be easier to add them onto the lease.

if you're not making a profit off it, I can't fathom how it could be considered as taxable income... like, every single roommate situation in the entire country is like that.

back when I had a roommate, both of our names were on the lease, but all the bills were in my name and I paid the rent every month. at the end of the month, I'd just let him know what he owed me (rent + 1/2 of the utility bills)

 

[ScottyB]

I would add a roommate and go 50/50.

Unless you got a bunch of Asian business men together and rented out drawers in your over-sized bureau.

 

[Gothgar]

I dont think legally you can even rent a room out in an apartment... I could be wrong

 

[spidey07]

It's income. Of course it is taxable and you are required to report it.

 

[mugs]

You're not renting the room to them, you're splitting the rent with them.

 

[miri]

You're not renting the room to them, you're splitting the rent with them.

im confused, some people are saying its taxable, others are saying its not because your splitting rent with them.

Is there anything official I can look this up to find out?

 

[nageov3t]

im confused, some people are saying its taxable, others are saying its not because your splitting rent with them.

Is there anything official I can look this up to find out?

http://www.irs.gov/contact/index.html

why are you so paranoid about this, though? are you high?

 

[Gothgar]

http://www.irs.gov/contact/index.html

why are you so paranoid about this, though? are you high?

lol

 

[miri]

http://www.irs.gov/contact/index.html

why are you so paranoid about this, though? are you high?

No, just wondering why it would be considered taxable income when the money would be going to the apartment complex. I think it would just be easier to put them on the lease and they can pay the apartment complex directly.

 

[nageov3t]

google reports that household expense sharing is not taxable.

 

[Vic]

If you put them on the lease, you're splitting the rent and there is no income. If you don't put them on the lease, then you're subletting. If you're not profiting from the sublet (and it sounds like you wouldn't be), then there is really no reason to file a Sched E.
While you're so concerned about the law, keep in mind that not all states allow subletting, and in many cases your landlord may prohibit it in the lease as well, and require that all adults living in the property sign the lease as well.

 

[Vic]

im confused, some people are saying its taxable, others are saying its not because your splitting rent with them.

Is there anything official I can look this up to find out?

I'm gonna give those who say it is taxable the benefit of the doubt and say that they are confused by the 1st sentence in your OP.
If you did own the property, and established a formal room rent agreement with a boarder, then that income could be taxable. But only if you made a profit on it after expenses, which most people in that circumstance don't.