What are the tax laws relating to renting and maintenance on my mother’s home while she is on medicaid

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What are the tax laws relating to renting and maintenance on my mother’s home while she is on medicaid

My mother is in a nursing home and is
terminal. She is on Medicaid and her
only asset is her homestead. As her son,
I will inherit this property on her
death. Can I rent it in order to pay for
maintaining it. How do I report the
rental payments?

Asked on October 11, 2018 under Real Estate Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

1) You need a power of attorney from, or if she is mentally incompetent, legal guardianship over, your mother to have the legal authority to lease her home. That you will inherit is irrelevant, since it will not become yours until she passes; it is currently still her property.
2) If you have the legal authority, you can rent or lease it.
3) The income (net income after costs) from renting it will be your mother's income (since it is her property) and will be reported in her tax return with any other income (e.g. social security) she has.
4) The income can be used to pay for or maintain the home.


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