Sounds like a scam and that’s probably the way the IRS would look at it.
If the taxes, insurance and expenses are in your name I doubt that it matters who “pays” the bill because you are the one who is legally benefiting. Sounds like income.
If it looks, acts and quacks like a duck....
If your girlfriend moved in and you both split expenses, would it be income to you?
If your girlfriend moved in and you both split expenses, would it be income to you?
Rent is income, but share expenses are not income, according to my wife, the Enrolled Agent Tax Professional. She recommends a set level of contribution to household expenses, rather than having one person pay the taxes, another pay the insurance, and others the other expenses. Thus, all of the money goes into a single, shared pot to cover all expenses. That requires a detailed budget and careful disbursing from the shared pot. This arrangement will pass muster with the IRS as shared expenses and not rent. Thus, it will not be income for any of the residents.