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.
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.
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