QUESTION
If you are receiving long term disability do you report the rental of your house to pay the mortgage?
Asked on Jul 19th, 2013 on Estate Planning - Missouri
8 ANSWERS
Thomas Edward Gates
Yes, that is income regardless on what you use the money for.
Answered on Jul 25th, 2013 at 2:39 AM
2 Awards
If you are renting out a portion of your house to help pay the mortgage, that is considered income and should be reported.
Answered on Jul 25th, 2013 at 2:39 AM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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It depends on whether you have enough income to file a tax return. If with the rental income you do not have enough income you don't have to file a return. However, if with the rental income you do have enough to file a tax return you need to report but it should be offset with the mortgage and other deductions.
Answered on Jul 25th, 2013 at 2:39 AM
3 Awards
Maybe. Are you living there too? You need to consult your policy.
Answered on Jul 25th, 2013 at 2:39 AM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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You don't report it to whoever is paying you disability. You will have to report it as income on your tax returns.
Answered on Jul 25th, 2013 at 2:39 AM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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Disability is not needs based, so I do not think this would be necessary. If you were receiving SSI, that would be different. In that case, you would need to let them know.
Answered on Jul 25th, 2013 at 2:39 AM
Probate Attorney serving St. Louis, MO
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Edward L. Armstrong, P.C.
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You don't mention in your question whether the "long term disability" you are receiving is paid by a private (contractual) source such as a disability insurance policy or by the Social Security Administration. For Social Security Disability the amount of payment you receive shouldn't make any difference as disability is not "asset driven" meaning you are entitled to it regardless of your income. A disability insurance policy will depend on what the policy says. Payments from a private source may be taxable as would the rent received by you.
Answered on Jul 25th, 2013 at 2:39 AM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Rent is income. Income is taxable. Talk to your accountant for tax implications.
Answered on Jul 25th, 2013 at 2:39 AM