What are potential pitfalls of having friend share my home to help with expenses? Can I avoid having this money counted as income, for taxes?Diane

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What are potential pitfalls of having friend share my home to help with expenses? Can I avoid having this money counted as income, for taxes?Diane

Asked on May 14, 2009 under Real Estate Law, Pennsylvania

Answers:

J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

technically, if you are receiving money from people you live with that are friends, not family members, you are receiving ordinary income that is taxable (i.e. rental income). There is no real way to change the naute of th benefit they are providing to it outside the rules of tax law. 


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