Politically Correct
Favorite Answer
UK answer: as your son's wife, she is a member of your household, not a tenant. Money she gives you is now considered a contribution to household expenses and not taxable but her income will affect any benefits you receive. Does your son live with you too? Daughter in law will need to rent from a non related landlord to be able to qualify for benefits. She cannot get her nose into two troughs at the same time.
?
her paying you is am income and must be declared and taxed , in other words you are breaking the law , and you daughter has every right to as for a tenants agreement , after all she pays rent to you , doesnt she . You rent the property , so you must follow the laws , such as declaring the money to the irs (tax dept) and pension department and have a signed contract under state laws .
?
they not married were together but broken up. She pays towards living costs not actual rent. She wants to claim rent from universal credit (UK), they want a rental agreement before they pay. She's not paying anything now, she was working but had a baby went on maternity leave and not returning to work.
sunshine_mel
In the UK you can't get benefits if you rent from family.
That aside ,having a legal tenancy agreement is safer for you (it makes her legal obligations of rent etc binding). Make sure you know what being a landlord means
curtisports2
In the US, no different than it did before. You were ALWAYS supposed to report the rental income on a Schedule E, and you were ALWAYS allowed to take any legitimate costs of producing that income as deductions against that income. Whether or not you would be taxed on net rental income can't be answered without detailed info from you.