Rental income from Dependent?

[Gary2]

And this does not obviate the at least small gorilla in the room being that the destitute sister IS obviously receiving (more than) $6k/year and the other sister might not even be providing >50% of her support. This of course could be a moot point if there are many medical bills and such not covered by insurance.

It's a moot point because once the destitute sister reaches the six month mark, being totally disabled, she will get Qualified Child treatment. Hence her gross income is irrelevant, nor does it matter whether the client is actually supporting her sister. The SSI is treated as third party support, so only the $172/month SSDI cited previously would count as support provided by the disabled sister for herself. So, other than the six month requirement, it seems quite likely she will qualify as a dependent.

The SSA site does have substantial information about SSI, including regulations on-site (unlike the IRS, which forces you to go elsewhere for regulations). I haven't studied it in detail, but after some quick reading, I saw references to parents but not dependency. Also, the amount of SSI is affected by both actual and imputed other income, and below-market rent would count as such imputed income. On the other hand, I saw something else that suggested that the if the destitute sister paid her share of household costs (think costs that go into HoH qualifications divided by number of household members), then there would be no imputed income, even if the net effect was less than a below-market rent. Having no real experience or expertise, I'm just pointing out some of these issues that may be worth further research.

[appelman]

Well, yes, actually, I can.

Let me add this.. if this was an unrelated party paying $500/month rent.. would you include that?

If you answer that yes, how can you answer your question no?

I believe (correct me if im wrong), the only difference between non related and related is the amount of expenses you can claim (up to the amount paid for relatives).

Chris

We're talking about a member of the household. Just what would she be paying rent FOR? Her sleeping room? Access to the bathroom? Or to the kitchen?

Incidentally, when we're dealing with a real rental (which I don't think this is), the question is not whether it is to a relative, but whether it is being rented as a profit-making activity, which generally requires collecting fair market rent.

Also relevant may be the discussion of personal use of a dwelling on p. 21 of Pub. 527.

[spanel]

"My client of means, is supporting her sister and is spending a lot of money to do this. For her sister to qualify for Social Security, sister had to contribute to the household income, so she pays $500 a month "rent" to my client."


The post started out as "rent". I'll agree with you if shes chipping in $500/month for groceries, etc.. .i probably wouldnt mess with it. But.. if she has to specifically give the owners money for "rent" per the SSI..


Chris

[Possi]

Sorry, I dropped the ball...

My mother got very ill in Texas, I live in VA, but was in CT when this happened. She is 85 and might have lymphoma. I am now in TX taking care of her for a while. I have not been online since this happened. It is most likely that her healing will be divine healing, and it won't happen on Earth... so if you are a praying persuasion, please keep her in yours... Her name, like mine, is "Donna."

Back to the post...

I'm going to need to talk to my client and see what the real skinny is on this. I appreciate the discussions, and your help in getting to the bottom of this BEFORE tax season begins!

I'll get back to you....

OK I'm back.
The amount of SSI was partly dependent on how much she contributes to the household. So, my client mis-spoke and it isn't "rent" but contributing to the household.

Does that help?

[Lion]

Prayers

Sorry, Donna. I'll keep your mother in my prayers.

Let me know when you're back in CT. The NY/CT-ATP has another dinner/education meeting in November in Bethel and a two-day seminar in December in Danbury.

[Possi]

Thanks

Sorry, Donna. I'll keep your mother in my prayers.

Let me know when you're back in CT. The NY/CT-ATP has another dinner/education meeting in November in Bethel and a two-day seminar in December in Danbury.

Thank you for your prayers. We should know something next Thursday.

When is the 2-day in December? I'm supposed to attend NATP in Hartford Dec 2-3, but don't know right now if I'll be back by then. This cancer or whatever it is, is moving quickly.

[Lion]

December

Again, remember all these prayers coming your way.

December NY/CT-ATP seminar is Friday & Saturday 3-4 December in Danbury near the NY border. If anyone wants info, let me know.