CA renter's credit when multiple people living in same house

Apr 10, 2009 2 Replies

Hi. Does the CA renter's credit apply to a family or group of friends that rents a house, townhouse, or big condo and each one pays a part of the rent? It seems that it ought to, especially if the rent each one pays is FMV relative to the size of their room. I see a possible loophole if a family of 10, each one filing a single tax return, lives in a 2 bedroom house and each one claims the renter's credit of $60.


The nonrefundable credit is available to any resident of CA who is not a dependent, whose income is not too high, is not living on property that is exempt from CA property tax and pays rent for at least 6 months for his/her principal residence. If 10 people, all of whom are paying rent for their principal residence, can squeeze into a 2 BR house and pay rent for 6 months.. go for it.

Not just people -- family members, but no one is anyone else's dependent or spouse (MFJ credit is $120). Talk about family values!

-Mark Bole

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