Rental Income

[tsuewalker]

Client is an elderly lady with dementia. Her son rented her home last year Sept-Dec while she was living with him. She was issued a 1099M showing $4000 in box 1 (Rents). If she doesn't reach the filing threshold of $11,900, with the rest of her income added in, does she have to report this rental income?

Thanks for your help in advance.

Tanya

[ATSMAN]

Client is an elderly lady with dementia. Her son rented her home last year Sept-Dec while she was living with him. She was issued a 1099M showing $4000 in box 1 (Rents). If she doesn't reach the filing threshold of $11,900, with the rest of her income added in, does she have to report this rental income?

Thanks for your help in advance.

Tanya

If she were my client, I would recommend filing a return though no taxes may be due only to prevent a future IRS notice because of the 1099 Misc issued to her.

[spanel]

If she were my client, I would recommend filing a return though no taxes may be due only to prevent a future IRS notice because of the 1099 Misc issued to her.

Also make sure she doesnt have a state liability.

Chris

[Jiggers]

Why was a 1099 issued? Was he renting the house for business purposes?

[ATSMAN]

Why was a 1099 issued? Was he renting the house for business purposes?

In MA if a landlord rents to low income taxpayers receiving a rent subsidy, the agency issues a 1099-Misc to the landlord in the amount of the subsidy. I am assuming other states do the same as well.