rent for child with disabilities

[gman]

Department of human services is asking grandparents of disabled child to charge him rent. Have no idea why. The child is 22
and is drawing soc sec disability. Maybe this would help him qualify for some socal services. He does go to adult daycare during the day.

My quesion is, would the grandparents report this on Sch E as rent income? expenses??

thanks

[taxea]

Department of human services is asking grandparents of disabled child to charge him rent. Have no idea why. The child is 22
and is drawing soc sec disability. Maybe this would help him qualify for some socal services. He does go to adult daycare during the day.

My quesion is, would the grandparents report this on Sch E as rent income? expenses??

thanks

What is your source for this info? Perhaps something was misunderstood. If it is accurate then, yes, it would be reported on Sch E. You need to get more info. If he is their dependent then why would he need to pay rent?

[oceanlovin'ea]

earlier post

There was an eariler post by JenMo with this same question. Not sure what is going on in this situation but it doesn't make sense to charge rent to a disabled person who lives in your home.

you might check that post to see if there are similarities.

Linda, EA

[Traveling EA]

Rent

Department of human services is asking grandparents of disabled child to charge him rent. Have no idea why. The child is 22
and is drawing soc sec disability. Maybe this would help him qualify for some socal services. He does go to adult daycare during the day.

My quesion is, would the grandparents report this on Sch E as rent income? expenses??

thanks

I have a niece with Downs. Her parents are supposed to charge her rent. I think it is because the daughter is on SSI and cannot 'save' any money. Any moneys that come in has be be spent.

[gman]

Thanks

For the information. Grandparents have had the child for many years. Maybe it has something to do with his age. They do not seem to understand why they need to do it. They were told to withdrawl it from his account each month by health service agency

[thomtax]

Don't know all the facts here, but one of my clients has to keep buying things for mentally-challenged child receiving benefits because if the child's account accumulates a specified amount of money, the state will start taking away the benefits paid to the child. So they keep a close eye on it and spend whatever is necessary to meet the requirements. It's possible that the rent would accomplish this.

[taxea]

The funds that he gets are supposed to go toward support. The caregiver can write checks out of child's account to pay every support expense. I would suggest that rather than call it rent, they should get a credit card and use it for every expense on his behalf then pay it off each month from his account. This would include his share of all household expenses. It is a bit more work but it gives them excellent records when questioned on how much of his money is being spent for his support.