Timeline for Tax consequences of paying "rent" to romantic partner that owns the house
Current License: CC BY-SA 4.0
10 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Aug 1, 2020 at 19:19 | comment | added | Fattie | @Harper-ReinstateMonica , here's a young lady with actually a really interesting rental related question (notice her comments to me), but the question/title is not clear .. money.stackexchange.com/a/128391/41786 | |
| Aug 1, 2020 at 2:50 | comment | added | Kat | @Harper-ReinstateMonica to be clear,, that wasn't a criticism, as you obviously have no way to know how much she would pay. Your answer is excellent as usual, just listing it as something to consider before deciding whether an agreement is fair or not. | |
| Jul 30, 2020 at 18:28 | comment | added | Harper - Reinstate Monica | @Klaycon You're right, you asked about tax implications, which in this particular case worked out as tax benefits. I have no judgments as to whether that's fair or not; as Kat points out, home ownership also entails risk, and further, I did neglect to mention the additional income tax on your rent. | |
| Jul 30, 2020 at 17:47 | comment | added | Kat | @Klaycon keep in mind that while theoretically your partner is making money, they are also taking on the risk of the price of the house crashing, experiencing a major repair, being unable to sell if they want to move, having most of their net wealth tied up in something illiquid that historically isn't a great ROI, etc. The cost of living in a house is a lot more than just the mortgage payment. If you're paying what you would to rent a similar place, then that does seem fair. Plus Harper didn't subtract what she'd pay in income tax, it could be a wash with the extra deductions. | |
| Jul 30, 2020 at 17:29 | comment | added | Klaycon | @Harper-ReinstateMonica I don't remember asking what the benefits were so I interpreted their inclusion in your answer as a suggestion that I may be overpaying, my mistake. Good to hear I seem to be doing something sane at least. | |
| Jul 30, 2020 at 15:57 | comment | added | Harper - Reinstate Monica | Me too. I am not saying you are wrong, you asked what the benefits were and I am answering. | |
| Jul 30, 2020 at 14:32 | comment | added | Fattie | @Klaycon I agree with your idea of simply "what you would pay to rent a share in a simliar house nearby". Really that's it. | |
| Jul 30, 2020 at 14:07 | comment | added | Klaycon | Thanks for lining out how my partner is uniquely benefiting in asset gains. I read in other answers on this site that it was good to start with the usual price to rent in similar nearby homes, and $500 is in fact half of that! I figured it should be around the minimum I should contribute. But perhaps because it's really not rent and my intention is just to help out, this is not quite reasonable. | |
| Jul 30, 2020 at 12:21 | comment | added | Fattie | tricky business! | |
| Jul 30, 2020 at 6:35 | history | answered | Harper - Reinstate Monica | CC BY-SA 4.0 |