Hubby pays rent to Wife

[BHoffman]

Wife (client) owns a second house in her own name. Hubby lives in that house. He gave her $9,000 in 2008 to cover expenses. She explained it to me as Rent. It is well below FMV. Should she report that as income?

The answer seems obvious that she need not report this as income, but I've not seen this before and would like your opinion.

They are on good terms and no divorce is pending. They file MFS and they do not co-mingle any finances. Sounds kind of like "marriage with benefits".

Thanks for response.

[Gretel]

Interesting situation. I would not call this money income no matter how wife calls it in her mind. It's just personal use. Unless hubby uses for biz and wants to deduct rent. Then you would have a whole other set of issues.