Friday, November 20, 2009

Can I claim rent paid on my state taxes (Wisconsin) if I live with my parents?

I don't see why not, but I want a second opinion. This would increase my refund and I don't want to miss out on it if it's an option.

Can I claim rent paid on my state taxes (Wisconsin) if I live with my parents?
OK. You did not pay rent on your state tax. You may be talking about the consumer tax. You may pay a tax of some sort in Wisconsin on some equipment that you rent out in order to perform work or for a business endeavor.


If you have a business, you could take the square footage that you need for your business divided by the total square footage of the dwelling you are renting out. However, if you rent from your parents, the IRS says you must pay the prevailing rent in your area. If the rent is "discounted", the deduction will be disallowed. Then there's also the issue of: do you genuinely have a home office or equipment that you have to store in your parent's home? And, there's the issue of: are you sincerely attempting to make a profit? Renting from or living with your parents would subject you to IRS scrutiny if your deductions and the inventory you need were significant.
Reply:In general rent is not deductible unless you own a business and you are paying the rent for your office space
Reply:rent paid for a place to sleep isn't tax a deduction. If you pay rent for a place of business, then you would claim it as a business expense. That only works if you have a business.


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