My mom is 72 years old and lives with us. She has $1,800 in interest earned and $8,000 in rent income. Does she have to file a tax return if we do not claim her as a dependent? My understanding is that she does not have to file a tax return if her gross income is less than $10,300 in 2008 because she will end up neither paying income tax nor getting a refund.
Thanks in advance.
The filing requirements at
at
My situation is that my mom gets 2/3 of the rent ($8,000) and I get
1/3. If she does not file and I file showing $4,000 rent, do I have to prorate all rental expenses, such as depreciation, etc. and claim only 1/3 of expenses or can I show $4,000 in rent income (1/3) but can show 100% of rental expenses? The house is owned in tenants in common but I pay all expenses and manage the rental property completely.Thanks in advance.
It would seem that the expenses have to split according to the rental income, that is 1/3 and 2/3. Probably the rental expenses are paid from the income, so shifting the expenses to one partner while keeping the income split according to ownership interest / number of shares seems like a way of avoiding taxes. I'm no expert on partnerships though.
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