Legal Question in Tax Law in California
tax on owed rent
My aunt rented me an apartment in 2000, I was behind on rent so she let it go; i also filed for chapter 7 bankruptsy and included her as a debtor.
If I wish to pay back the old rent this year (2008) does she have to pay taxes on it and how does she report it?
Asked on 3/18/08, 5:21 pm
1 Answer from Attorneys
Jeb Burton
The Burton Law Firm
Re: tax on owed rent
Yes she would have to pay taxes on it. If she already wrote the debt off on her taxes, she might not be entitled to the late payments (talk to your bankruptcy attorney).
Depending on what type of tax filer she is, she has already either paid taxes or needs to report it as income for this year. If she is charging interest, that is also income.
Talk to an accountant to get the specifics.
Answered on 3/18/08, 5:30 pm
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
