I own a condo which I live in with my domestic partner. She pays < $1500 per year in "rent" which I use toward the HOA + property taxes. How do I report this income in TurboTax? I am not really renting out the property because (1) I live here too (2) the "rent" is far below market rate. Any suggestions how to accurately and legally report this income in TurboTax? Thank you.
There is a grey area here.
In my opinion, the amount is too low to be a concern. Very honest of you to wish to report it and pay taxes, but we can legitimately claim this is not quite rent, but a sharing of utilities. $1500 = $125/month. This is a fraction of normal monthly Gas/Electric/Cable bill total.
I'd ignore this for tax purposes.
In theory, the opposite thing is the issue. The fact that the 'rent' is so far below market value can create an issue of imputed income. This is most commonly the case when renting an apartment or house outright, no so much when you have a roommate situation. Again, I'd ignore for tax purposes.