A friend's daughter came from England to stay with me. It was thought that she would stay a few years. In preparing for her arrival, I put down new floors and painted the basement (there is already a bathroom and bedroom down there). I also did some landscaping to widen my driveway to account for her getting a car. Her mother had sent money to me via money transfer a few times. The young lady staying with me decided after a short period to move elsewhere. Can I still claim the floors, paint, maintenance done in preparation for her? If yes, where on the tax form and how much?
What you have described is a cost-sharing arrangement more than a rental situation as there was no expectation of profit. In these situations, you do not need to claim the rent nor the expenses.
So, there are no write offs to having a tenant living in your house? If not, then I do not need to claim 'rent' that I received?
What you have described is a cost-sharing arrangement more than a rental situation as there was no expectation of profit. In these situations, you do not need to claim the rent nor the expenses.