So basically I bought a house and a couple friends live with me in it. They pay a low amount each month to cover part of the mortgage and utilities. No lease, insurance company told me that it's not a rental property as long as they're just "some friends living with me and helping out with the bills" and not actual renters, but if they got leases it'd be a rental property. I have no idea if this applies to taxes as well. Do I need to claim the money they pay as income and then pay taxes on it even though it goes straight to the mortgage? This is in Michigan.
[Edit] consensus seems to be that yes it is income that legally I should report (although lots of people don't). Luckily I can include a lot of home costs and utilities as expenses that are deducted from the rent money so my reported "profit" will actually be close to zero.
Submitted July 14, 2019 at 09:14PM by DefinitiveEuphoria https://ift.tt/32mrwNH
