6 ms·

So how much didn't you pay in rent? That's like trying to explain how much money you didn't make this year and being taxed on it. I didn't make a billion dollar

So how much didn't you pay in rent? That's like trying to explain how much money you didn't make this year and being taxed on it. I didn't make a billion dollars... do I get taxed for that?

Dylan16807 12y ago
The obvious answer is fair market value, but now you have me wondering if you're supposed to pay for taxes on someone giving you a ride, even in a way where paying for that ride would be illegal...
- jklein11 12y ago
  Read Hillrat's comment above. Unless you racked up 14k in rides, you wouldn't have to declare it.
- FireBeyond 12y ago
  My employer gave me a loan. Whilst they were happy to do so interest-free, the company accountant advised that it would then be subject to income tax. They had to give me the loan at at least the prime rate (which was fine for me, since at the time there was no way I was getting a loan at that rate).
nknighthb 12y ago
Fair market value. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employ...
jklein11 12y ago
Hmmm... not quite. In the case of the rent you got some resource,(ie a place to stay) that is worth x amount of dollars. Your friend who was nice enough to cover that expense gave you a gift of x dollars. The amount of money you make is a trade you made for your time. If someone were to do your work for you while you reaped the rewards... yes you would be taxed for that.
- msandford 12y ago
  One could (un)reasonably -- perhaps logically -- make an argument that all sex now requires filing gift taxes by someone somewhere. Obviously notionally who is giving and who is paying is going to be a thorny issue, but it has to be resolved. Sex is monetizable in some jurisdictions (almost nowhere in the US, but neverless somewhere!) and as a result all sexual acts have monetary value; it doesn't really matter where they are performed. Given that they have value someone must be giving up income by not charging, and someone else is receiving a gift which the other party is so generously waiving.
  - logfromblammo 12y ago
    A tax on thingy?!
  - balabaster 12y ago
    So what rate do you tag that with? I mean... your partner is clearly in the price bracket of "high class escort," right? How do you justify how much your partner is worth on a tax return? Do you let your partner see your tax return for fear that they claim you don't value them as much as you should? Or do you overvalue them and get overtaxed? Where's the fine line? Or do you agree amongst the two of you that for the purpose of your tax returns you're both "$5 blowjob on the corner for crack" material to keep each of your taxes to a minimum? Who's to argue? Do the government have to send people around to rate you both to ensure you're not skipping out on taxes? "Well, she's a 10 who could easily score the $8,000 a night which is the going rate at Madame's High Class Escorts down the street. You've been living together for 6 years now and you've not claimed this as a taxable benefit. So you owe us back taxes on $17.52M - we don't care that you only earned $480,000 in that time. Also, we're really not understanding how she's with you knowing she could have made $17.04M more if she ditched you." and handing your partner their business card... Even using "market rates" as this thread is suggesting is an incredibly subjective affair. Let's say you rent a room some place, at market rate for the area... what's market rate? It's 1 bedroom, 1 bathroom, shared kitchen; but there's mold and clearly the roof leaks, none of the kitchen cupboards shut properly, the hot water doesn't work, the door lock is a wedge of wood in the door jam, you've seen cockroaches. It's rented out by a slumlord, but it's in a ritzy neighborhood. You're in a position where you have to rent this place, it's a dump, you're not sure if you weren't in this situation that anyone else in their right mind would rent it... the rent is $1,500 a month, because of the location. Your friend down the street takes pity on you and lets you crash in his spare room to save you the indignity of living in this shit hole. Do you get taxed on the place you can afford or the rate your friend could get if he put his spare room up for rent? Given that he doesn't want to rent his room out to a stranger, but he's letting you crash there for free because he's your friend, what is the market rate for that room? The same as the one down the street which is only room for rent on the street? How does "market rate" get applied?

So how much didn't you pay in rent? That's like trying to explain how much money you didn't make this year and being taxed on it. I didn't make a billion dollars... do I get taxed for that?

Dylan16807 12y ago

The obvious answer is fair market value, but now you have me wondering if you're supposed to pay for taxes on someone giving you a ride, even in a way where paying for that ride would be illegal...

jklein11 12y ago
Read Hillrat's comment above. Unless you racked up 14k in rides, you wouldn't have to declare it.
FireBeyond 12y ago
My employer gave me a loan. Whilst they were happy to do so interest-free, the company accountant advised that it would then be subject to income tax. They had to give me the loan at at least the prime rate (which was fine for me, since at the time there was no way I was getting a loan at that rate).

nknighthb 12y ago

Fair market value. http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employ...

jklein11 12y ago

Hmmm... not quite. In the case of the rent you got some resource,(ie a place to stay) that is worth x amount of dollars. Your friend who was nice enough to cover that expense gave you a gift of x dollars. The amount of money you make is a trade you made for your time. If someone were to do your work for you while you reaped the rewards... yes you would be taxed for that.

msandford 12y ago
One could (un)reasonably -- perhaps logically -- make an argument that all sex now requires filing gift taxes by someone somewhere. Obviously notionally who is giving and who is paying is going to be a thorny issue, but it has to be resolved. Sex is monetizable in some jurisdictions (almost nowhere in the US, but neverless somewhere!) and as a result all sexual acts have monetary value; it doesn't really matter where they are performed. Given that they have value someone must be giving up income by not charging, and someone else is receiving a gift which the other party is so generously waiving.
- logfromblammo 12y ago
  A tax on thingy?!
- balabaster 12y ago
  So what rate do you tag that with? I mean... your partner is clearly in the price bracket of "high class escort," right? How do you justify how much your partner is worth on a tax return? Do you let your partner see your tax return for fear that they claim you don't value them as much as you should? Or do you overvalue them and get overtaxed? Where's the fine line? Or do you agree amongst the two of you that for the purpose of your tax returns you're both "$5 blowjob on the corner for crack" material to keep each of your taxes to a minimum? Who's to argue? Do the government have to send people around to rate you both to ensure you're not skipping out on taxes? "Well, she's a 10 who could easily score the $8,000 a night which is the going rate at Madame's High Class Escorts down the street. You've been living together for 6 years now and you've not claimed this as a taxable benefit. So you owe us back taxes on $17.52M - we don't care that you only earned $480,000 in that time. Also, we're really not understanding how she's with you knowing she could have made $17.04M more if she ditched you." and handing your partner their business card... Even using "market rates" as this thread is suggesting is an incredibly subjective affair. Let's say you rent a room some place, at market rate for the area... what's market rate? It's 1 bedroom, 1 bathroom, shared kitchen; but there's mold and clearly the roof leaks, none of the kitchen cupboards shut properly, the hot water doesn't work, the door lock is a wedge of wood in the door jam, you've seen cockroaches. It's rented out by a slumlord, but it's in a ritzy neighborhood. You're in a position where you have to rent this place, it's a dump, you're not sure if you weren't in this situation that anyone else in their right mind would rent it... the rent is $1,500 a month, because of the location. Your friend down the street takes pity on you and lets you crash in his spare room to save you the indignity of living in this shit hole. Do you get taxed on the place you can afford or the rate your friend could get if he put his spare room up for rent? Given that he doesn't want to rent his room out to a stranger, but he's letting you crash there for free because he's your friend, what is the market rate for that room? The same as the one down the street which is only room for rent on the street? How does "market rate" get applied?