Re: Here is another response from Sherri Schneider regarding SSI

[Guest guest]

I have checked the IRS website, talked to an IRS agent, and confirmed with my

sister in law, who is a CPA. She agrees with me on the following:

1) do not call it rent. Call it your child's portion of the costs of living

there - room and board. By the time you are done figuring out what your child's

equal portion would be, you would learn that the amount you are charging your

child doesn't even come close to covering it.

Many parents have their adult children living with them and paying room and

board. Many people have room mates. None of them report this as 'rental

income'.

ellenbronfeld <egskb@...> wrote:

There are three basic " Living Arrangements " that SSI relates to:

1) Living with me:

- If my (adult) child on SSI is living with me and does not pay

me, he/she will see a 1/3 reduction in their SSI. (room & board is

seen at a value of 1/3). Instead of receiving $637 monthly in 2008,

he/she will receive $424.67

2) Pays me rent:

- If my (adult) child on SSI pays me rent and the rent is above a set

amount, he/she will receive the full $637 monthly. That being said,

before I made this decision, I spoke to my accountant/CPA because I

was afraid this may have negative consequences to me, personally,

ie:

- I am now receiving rental income, do I need to claim this income

on my taxes?

- My house may be considered rental property. Will it depreciate

when I sell it?

- there were other questions that my accountant/cpa came up with.

So, when making this decision, I needed to not only view what is best

for my (adult) child but also what is best for my family.

3) Pays his " fair share " or " shares household expenses "

- in order to do this, the parents would have to supply all

household

expenses - even if the child is over 18 years old - rent,

mortgage,

taxes, insurance, electric bill, gas bill.......and then Social

Security

divides the household monthly expenses by the number of people

in the household. If my (adult) child's monthly portion is more

than

the $637 he/she would receive from SSI (and he/she has no other

income) than SSI considers he/she is getting " help " with their

share

so he/she could still lose 1/3 of this monthly benefit.

" HELP " is a four letter dirty word for SSI. In years past, we could

not buy clothing for someone on SSI as this could result in a

reduction of the monthly money amount. BUT NOW we can buy clothing

for individuals on SSI. hurrah!!

Sherri Schneider, Family Benefit Solutions, 847-279-8506.

__________________________________________________

Finato

www.AngelSpeaks.com

www.wegrowdreams.org

[Guest guest]

Another slant to the issue of charging " rent " . In

Aurora, where I live, it's a violation of local

housing codes to charge rent. Although that's

certainly aimed at prohibiting homeowners from taking

in non-family boarders, it also leaves them

technically violating the law when taking fees from

family members for " rent " , so for that reason, as well

as the IRS, best to call it sharing living expenses

(because that, of course, is the truth).

Susie Redfern

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