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    #1

    Rental Income

    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
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    #2
    Originally posted by tsuewalker View Post
    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.
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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      #3
      Originally posted by ATSMAN View Post
      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

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        #4
        Why was a 1099 issued? Was he renting the house for business purposes?
        Jiggers, EA

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          #5
          Originally posted by Jiggers View Post
          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.
          Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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