What are the tax laws relating to renting and maintenance on my mother’s home while she is on medicaid

UPDATED: Oct 1, 2022

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What are the tax laws relating to renting and maintenance on my mother’s home while she is on medicaid

My mother is in a nursing home and is
terminal. She is on Medicaid and her
only asset is her homestead. As her son,
I will inherit this property on her
death. Can I rent it in order to pay for
maintaining it. How do I report the
rental payments?

Asked on October 11, 2018 under Real Estate Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

1) You need a power of attorney from, or if she is mentally incompetent, legal guardianship over, your mother to have the legal authority to lease her home. That you will inherit is irrelevant, since it will not become yours until she passes; it is currently still her property.
2) If you have the legal authority, you can rent or lease it.
3) The income (net income after costs) from renting it will be your mother's income (since it is her property) and will be reported in her tax return with any other income (e.g. social security) she has.
4) The income can be used to pay for or maintain the home.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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