House rent is exempted for US tax or not?
I am staying in US.I am staying with my friend.I am paying house rent monthly 700$ to my friend.But I don't have any proof.I would like to know house rent is exempted for US federal and State Tax.I need proof receipt of house rent or can i claim house rent exemption directly(If available)Please let me know ASAP.
Public Comments
- No it is not. Rent is not tax-deductible. Some states have a form of "Renter's Credit" for a small amount off your taxes(since your rent goes to pay towards property taxes paid by your landlord), and if they do, that States tax return forms will let you know what proof is needed.
- There is no "tax exemption" for rent, LOL! But there IS a reporting requirement that your "friend" declare that money as income! If he is letting or subletting part of a house to you, he is in effect running a business, and must declare the money you pay him as income! Don't pick up any bad habits from this person!
- Sorry, but rent is not deductible. There is no "house rent exemption" in the US.
- Your question is not clear. If you are paying rent for an apartment or house for your personal use it is not deductible; unless you are renting it for business purposes. If you maintain a home office a portion of your rent may be deductible on a form 8829 for home office expense. If you are collecting rent then you put it on a Sch E and report it with your income tax filing and pay your taxes like the rest of us.
- No, rent paid by you to your friend is not tax deductible to you for your federal tax return, but it is taxable income to him/her and needs to be reported on his/her 1040 on Schedule E. However, Massachusetts does give a deduction (50% of rent paid up to a maximum of $6,000 (results in a $3,000 deduction)) for the state tax return. I am not sure about other states, but do know that for Massachusetts. You could deduct rent paid if you had a "home office" but it would be reported as part of either a schedule C using Form 8829, or on a Schedule A under miscellaneous itemized deductions using form 2106. But either way you could only deduct the % of rent that you paid that was for your office compared to the entire house (If your office was 10% of your house that you rented, than you could deduct 10% of your rent as a business related expense). And with the Schedule A you would have to exceed 2% of your AGI to be able to deduct it.
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