Renting from your significant other? Need tax advice

[Danny Kaminsky]

Hey BPers!

My girlfriend has recently hopped on the real estate bandwagon and is in the middle of buying her first house, we are going to live there for a few years together and then she’ll probably rent it out. Is there a way we can avoid her paying income tax if I pay some of the payment, or reimburse her?

Thanks so much!

[Corby Goade]

Quote from @Danny Kaminsky:

Hey BPers!

My girlfriend has recently hopped on the real estate bandwagon and is in the middle of buying her first house, we are going to live there for a few years together and then she’ll probably rent it out. Is there a way we can avoid her paying income tax if I pay some of the payment, or reimburse her?

Thanks so much!

 Presumably you are asking if she can avoid paying income taxes on the rent that you pay to her? I'm not a CPA, so of course you should consult with yours. That said, she will depreciate the house and have business related expenses that will offset her rental income. She will still claim your rent payments as income, but it should be wiped out (and then some) by the expenses, at least on paper.