Is rent from TP's live-in boyfriend reportable?

[ScottSpringerCPA]

Taxpayer owns her home, and her boyfriend moved in during 2018. He pays her $700 per month. He is not renting a specific room. They share a bedroom and he has access to the all the common areas just like her. How do I treat this on her tax return?

If I understand Pub. 527 (page 16) correctly, there's guidance for a situation where you are renting out part of your house, but it seems like that's only applicable if boyfriend was renting a specific portion of the house (e.g. renting a room that's just his). I don't see anything addressing the situation above where he's sharing a bedroom with taxpayer.

Taxpayer asked if she can treat the money received as a gift. Boyfriend pays less than $15K per year; so if this is allowed, the money wouldn't be reportable anywhere. However, I don't think this approach would be allowed. If boyfriend received something in return (such as a place to stay), then it’s not a gift. Is that your interpretation as well?

Any guidance you can provide would be appreciated.

Scott

[TAXNJ]

Sounds like two roommates sharing expenses.

[Uncle Sam]

I agree.
I had a similar situation a couple of years ago where I had a divorced lady who had a boyfriend live in her house reimbursing her for living expenses for sharing common areas, but had no written lease or any other formal arrangement to live there.
She asked me what should she do as far as reporting income. I advised her that since there's no official agreement in place or term limit or restriction as far as his living there - treat it as reducing her living expenses, as I considered the fact of "depreciating" a portion of her house etc when she wouldn't be using it for trade or business purposes.
It turns out, that since he was not a U S citizen, once the immigration issues became a primary focus of attention of concern in this country, he got scared and moved out permanently.
So in this case it was better not to convert an otherwise residential home to rental property and forfeit the benefits of Sec 121 exclusion when and if she sells the house and report partial capital gain for portion of house depreciated.

[ATSMAN]

Usually in a BF/GF situation it is a sharing of expenses because I can bet they are sleeping on the same bed! If The other person was renting a "specific portion of the house exclusively" then it may be a rental situation. I had a client who was renting the basement and back yard from his ex-wife for a whole year, till he got situated. He gave the house to wife in exchange for his rigs and IRA in the divorce.

[ScottSpringerCPA]

Thanks everyone. I appreciate the guidance, and it makes sense this would be roommates sharing expenses. I wasn't able to find anything in my research to back this up, but perhaps it's not specifically addressed because it's not a taxable situation. If you know of somewhere there's something authoritative, I would appreciate you pointing me to it. Thanks again for your help!

[TAXNJ]

Thanks everyone. I appreciate the guidance, and it makes sense this would be roommates sharing expenses. I wasn't able to find anything in my research to back this up, but perhaps it's not specifically addressed because it's not a taxable situation. If you know of somewhere there's something authoritative, I would appreciate you pointing me to it. Thanks again for your help!

https://www.irs.gov/businesses/small...ate-tax-center

and The Taxbook 8-7

good luck

[Lion]

Suggest that she as the homeowner pay the mortgage, property tax, any potentially deductible house-related expenses. Boyfriend can pay utilities, repairs, food, etc.

If he weren't her boyfriend, would she let him live there? Is $700 FRV for shared use of the whole house? It's probably NOT rent. Expense sharing.