Separating rental income to reduce Obamacare MAGI

[Steve Legnaioli]

I have a chance to rent out a large room for $2000 a month in my primary residence where I live (Key West prices). I am unemployed, my wife makes about $65,000 a year working, for our healthcare we are receiving Obamacare credits , So we purchase our healthcare through the marketplace. The phase out number for Obamacare credits for us is about $65,000, if we make one dollar more than the phaseout number, we lose all the credits. Is there a way for me to collect rent for this room, and keep it separate from my MAGI I report to the ACA ?

I understand that some of that money can be deducted for certain expenses, but $2000 a month is a large number to account for in that manner. Could a S Corp. be created to collect rent in someway?  Could I lease my house to my own S Corp. to sublet?
thanks

[Natalie Kolodij]

Originally posted by @Steve Legnaioli:

I have a chance to rent out a large room for $2000 a month in my primary residence where I live (Key West prices). I am unemployed, my wife makes about $65,000 a year working, for our healthcare we are receiving Obamacare credits , So we purchase our healthcare through the marketplace. The phase out number for Obamacare credits for us is about $65,000, if we make one dollar more than the phaseout number, we lose all the credits. Is there a way for me to collect rent for this room, and keep it separate from my MAGI I report to the ACA ?

I understand that some of that money can be deducted for certain expenses, but $2000 a month is a large number to account for in that manner. Could a S Corp. be created to collect rent in someway?  Could I lease my house to my own S Corp. to sublet?
thanks

 You don't get to have your cake and eat it too. 

If you're making $65k + another $2k a month- why do you feel that you should qualify for the credit when others making that much don't?

Don't abuse the system. If you want to rent the room, do is, account for it correctly, and  figure out if that extra income offsets the loss of the credit.