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Old 07-16-2008, 04:24 PM
 
2 posts, read 3,204 times
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I will be moving out of CT to NJ (for a new job) and would like to "rent" my house to my fiance. I am the sole owner of the property. If he pays the mortgage for the property will the IRS consider it taxable income? Would the advice change if I were married and my 'husband' was paying the mortgage for my property?
Would it help if I remained a CT resident? I assume that I will return to my property for approximately 2 weekends per month. Is this frequent enough to claim that I am still a CT resident?
Additional information: I have owned (and lived in) the property for 3+ years. The new company is providing corporate housing in NJ. This is a semi-permanent position for 2 years therefore I don't want to purchase a place in NJ until I am sure that is where I am settling. Also my fiance is not moving (quitting his job) until I have settled down.
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Old 07-17-2008, 04:56 AM
 
Location: Florida
21,000 posts, read 21,103,742 times
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He will be paying rent.

Whether or not it's equal to the mortgage amount is beside the point...it's reportable income to you.
You will be allowed to deduct usual expenses to defray the profit.
However, there are restrictions if you 'use' the property yourself over 10%(? Going by memory here) of the year.
Pull up the instructions for Schedule E and it should give you the information you need.
If you get married he wouldn't be considered to be paying you rent.....your personal use of the property would then be 100%
Disclaimer......double check what I say. I'm a landlord, not a tax expert.
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Old 07-17-2008, 06:58 AM
 
2 posts, read 3,204 times
Reputation: 13
Quote:
Originally Posted by old_cold View Post
He will be paying rent.

Whether or not it's equal to the mortgage amount is beside the point...it's reportable income to you.
You will be allowed to deduct usual expenses to defray the profit.
However, there are restrictions if you 'use' the property yourself over 10%(? Going by memory here) of the year.
Pull up the instructions for Schedule E and it should give you the information you need.
If you get married he wouldn't be considered to be paying you rent.....your personal use of the property would then be 100%
Disclaimer......double check what I say. I'm a landlord, not a tax expert.

Thank you Old_Cold. I really appreciate your answer. I'm planning on talking with a tax advisor but I wanted to be educated prior to going into the session.
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