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This is for California, USA

My MIL is living with us these days and we do not actually charge her for any rent. She has a small business that has sporadically yields some income. She insists on paying us with that money as my wife is paying for the mortgage on a house (separate from the one we all live in, which is owned by me) they (wife and MIL) own jointly. The amount would be between 10k to 15k a year.

How does this work in terms of taxes? Do we need to report the money MIL gave us as "rent" money?

  • Just to be clear, the house you all live in is a different house than the one that your wife and MIL own jointly? – Ben Miller May 4 '18 at 16:23
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    Assuming that none of the parties are taking business deductions from this, who is to say that your MIL, a residing family member , isn't just contributing to household expenses? The ultimate answer is that you should consult your accountant to see if tax law where you live applies. – Bob Baerker May 4 '18 at 18:32
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    MIL is giving money to you to cover house 2 that she partially owns. No issue there. – JoeTaxpayer May 4 '18 at 20:38
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    Even if she was just giving you money for no reason at all YOU wouldn't owe taxes. She might. – JohnFx May 5 '18 at 0:29
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    @tom I'd be surprised if her giving you money gave rise to a tax liability on her part. – Lawrence Dec 12 '18 at 11:06
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I would report it to the tax registry service, and be clear about what it's for, and if they say you need to file it as taxable, then you need to. Easy-mode.

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    What is a "tax registry service" ? – Hilmar Dec 12 '18 at 11:48
  • A tax registry service is basically the word used to describe the government and it's taxing service: like the registry service that tracks your income and your taxable amounts. – SushiCraft 99 Dec 13 '18 at 4:06

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