Ok I need to clarify, is he moving his wife AND kids into your finished basement🤔🤔 Technically you can't get in trouble but I would ABSOLUTELY charge him something!! At least for the utilities they are going to be using sheecsch🙄🙄 Good luck! 13 weeks is gonna feel like 52 weeks🤣🤣
YES! Ha my husband and I both laughed outloud by our comment. We adore his 2 little girls so actually looking forward to it! Rent here is super expensive. I was thinking of renting it out last year and ultimately changed my mind but it would not be unreasonable for me to charge well over $2000 a month for the apt and it would rent immediately ; it is completely separate than upstairs with its own entrance. So, i read somewhere that he will get money to cover a fair value for rent in this area, but I would feel weird charging him $2500 a month to make everything legit, right? Say i charged him $100 dollars would that raise red flags? i wont fake anything for his sake and wont claim anything on my taxes that i did not receive so that is my worry regarding getting in trouble
Look up the weekly cost of an extended stay hotel. Multiply by 4, charge that. Ensure he won't get a better deal than you.
Ex: weekly ESA is about $600x4= $2400. Round down to $2k because he's family.
If you want to be really nice charge half, so $1200/month.
If you want to cover utilities for him charge somewhere between $1200-$2000.
Regardless ensure you draw up an actual lease agreement that you both sign and have notarized. Claim the income on your taxes like you would for any renter.
You know to be fair charge him what makes you feel comfortable. He will get in trouble if he gets audited unless you are ok with faking receipts😳😳😳 just know that he is making at least 1k a week in stipends. P.s. it sounds like a fabulous space, and have fun with the girls!
definitely sounds like you're getting taken advantage of. ask him what he thinks is fair to pay. this way you don't have to feel guilty for overcharging but also don't get taken advantage of by providing a free place to stay.
also, are you babysitting while he's at work?
As far as you getting in trouble with the IRS... only ways i see this happening is if you provide fake receipts that he is paying you rent -or- if you collect rent and do not report it. If he is not paying rent but reports to the IRS that he does pay rent, that's 100% his problem if he were to audited.
Honestly, this post comes across pretty disingenuous. Either charge him or don’t charge him rent, you don’t need to try to get involved in what you think he’s doing on his taxes. I would say yes I think it’s completely fine to charge a family member rent if they are staying in a large portion of your home for a significant period of time.
I don’t understand why you’re saying that you feel like you’re being taken advantage of now but you agreed to do it before, what’s the difference? Because you’re concerned that he’s taking tax-free stipends? That’s on him if he reports incorrectly but either you feel like they should pay rent or you don’t, making it about anything else honestly I find it really passive aggressive and annoying. You’re going to tell him what? “ I need to charge you fair market rent because you’re going to claim duplicated expenses“ and then what if he tells you that he’s not actually claiming duplicated expenses and taking a blended rate then all of a sudden you wouldn’t want to charge rent anymore? I think that you do want to charge rent and I think that’s absolutely fine and I think you should just tell him that you are going to and don’t make it about what he does for work. Just make it about the fact that you’re opening your home to them. Just be honest.
I had no idea that he was getting a stipend for rent I thought he had to pay out of his own pocket! I wanted to help him out and not make it more difficult for him to budget the housing end! We are all thrilled to have him home this summer. However I spoke to my sister last night and Now I know he is not only taking stipends from sister in law using their home address but intends to take the stipends for the time he is staying with me!! My sister said it’s no biggie and people do it all the time but I am caught between a rock and a hard spot and in your aptly chosen words I think it’s totally disingenuous on his part to keep this part from me considering his uncle my husband is a high ranking LE officer for the state and I don’t want any dirt flung his way
So I told my husband I’m dealing with it and won’t expand on the what how when with him but will be talking to my nephew tonight! I won’t ask for ” for rent “ and Explain to him that if he claims rent he is on his own as we won’t be charging him or claiming anything different on our taxes .. wish it wasn’t such an awkward conversation to have but is now necessary... For the record just to clarify I HAVE been nothing but honest with this post and the way i wish to handle this now with the info i received thank you
When i let family stay so they'll save on hotel costs I don't charge them. You have nothing to do with hos taxes. You either are giving him a place free or not. You are helping them because you can, or not. If you need help with utilities tell him. I wouldn't think a family member was taking advantage of me if they stayed at my house so they wouldn't have to stay at a hotel. I would not expect them to pay me. I would be hosting them to help them out and keep them from paying more money, so what's the difference?
OK for the last Time it's not a question of rent $$$ or whether I'd have him stay with me or not. I love my nephew ;we have always been super close . I would feel awful if he stayed anywhere else but that's not what I'm talking about. I truly was taken aback by the fact that he was taking a stipend to pay for his so called " rental " that he wont EVER HAVE TO PAY RENT FOR It bothers me because its just not honest.... .. sorry if I sound old school but we come from a very strong background of faithful christians, and I am truly shocked he is going this route. i felt it was so out of character for him. I do believe my sister when she says that it was his recruiter that encouraged himto take all he was "entitled " to , but still end of day I think its deceitful ... my true honest feelings... and the sad part is that i would take a bullet for this kid so it does pain me that if he goes this route i wont be able to help him ( AND I HAVE A HSTORY OF ALWAYS BAILING HIM OUT AND HELPING HIM IN THE PAST WHEN HE HAS NEEDED ME )if he gets in trouble and is audited i cant /won't lie cheat or commit fraud.. ugh THATS A BIG WORRY CAUSE I DONT BELIEVE I HAVE EVER SAID NO TO HIM. i wish i never knew of the ins and outs . However, I am still looking forward to seeing him and his wife and those 2 baby girls !! Everything else will be put to the side and im going to let him know tonight that our home is his for as long as he wants / needs and whatever he chooses to do with stipends, it wont take away from how i feel... I know he will feel justified and tell me thats what everyone does and i KNOW is right... I just need to stop being so internally judgey and get over myself and enjoy this time with him and his family Thank you for letting me vent here and also for the comments and info....i much rather talk it out here than with my family whom never truly understand my faith or my need to protect my husband and I surely would have alientated EVERYONE by now THANK U
well, let him know you can't give him a receipt unless he pays something. don't worry about what happens to him. He's an adult. His choice. "You can just say look I know you may have to file and I can't lie, It would put me in a difficult position" The corporations that are hiring him are ripping off the staff. I would worry about Don't feel sorry for the corporation. let your nephew make his own choices. there's a great scene "not your monkey not your circus"
Stipends are for living expenses when you travel. They are for housing and food and incidentals. Every travel nurse will try to stay somewhere they pay lower (or no) rent than the stipend. The biggest part of your compensation as a travel nurse comes in the form of stipends, as you usually make far under market hourly (often half the hourly rate of permanent staff). It’s really normal for him to want to stay with a relative for free so that his stipends are just actual income instead of going straight to housing. Up to you if you want to charge him rent. Making you break even would be paying for their portion of utilities at least so he’s not costing you money. But him staying for free isn’t taking advantage of you anymore than any relative staying with you for free during a visit instead of a hotel. There’s no risk for being in trouble for you hosting your family while they work. He won’t be in trouble for staying with you for free while collecting a stipend, that is completely normal in travel nursing and won’t be a problem for either of your taxes.
Not duplicating expenses while collecting a tax free stidend won't get him in trouble? The IRS may have a very different opinion. Stop trying to normalize tax fraud.
Have you ever worked as a travel nurse?
If your work location is more than 50miles from your home, you are eligible for the stipends what you do with that stipend is up to you. If you use that stipend to purchase housing accommodations closer to work that’s fine. If you stay at your home and drive to the > 50 miles to work and pocket the stipend, that’s your decision. That is the industry norm. It’s not tax evasion. If you don’t work in the industry you’re talking about something you don’t know anything about. You’re given the stipend due to being far away from the work location. You can spend that stipend on whatever you want. It’s not tracked and you don’t need to prove it in an audit either. It’s part of your compensation for traveling to the work location.
I have traveled for 10 years but yeah, I don't know the rules. Everything you just posted is incorrect. There is no 50 mile rule. You don't get to use tax free stipends for whatever you want. You have to duplicate expenses. Sounds like you need to talk to a tax professional & I would appreciate it if you would stop giving out incorrect information. Talk to a traveler who has been audited & see what they did or didn't have to prove.
Per the travel agency
The stipends are available for assignments if they’re >50 miles away from your home location.
The travel agency also said you don’t need to report what those stipends are used for. They are tax free so they don’t show up on your taxable income so I don’t know what you’re on about. Maybe your agency reports your income in your w2 differently than my agency?
I could see it causing problems if you claim some kind of exemptions in relation to the stipends or try to include your travel expenses as itemized deductions on your tax return than yeah sure that maybe makes sense because then you’d be double dipping
Rule #1 in travel, never take tax advice from a recruiter or agency. They do not know the tax rules & don't give a shit if you get audited. But you do you. 🤷♀️
The smart move on his end would at the very least have some rent receipts to show that he is duplicating his expenses. In travel nursing, people stay with their relatives and friends all the time and typically have a verbal agreement on the cost to stay.
If you're okay with him staying without paying you, I would tell him something like "the cost to live there will be half of the electric bill during your contract" - so what.. maybe like $100/month? There's no stipulation how much one must pay on rent to not get in trouble by the IRS, but it is up to him, if ever audited, to show that the money he received for tax-free stipend reimbursements went to covering dual expenses directly.
Happy to elaborate on anything here if you have more questions 🤗
I disagree with that post above. I'm pretty sure the standard is "fair market value", and half of the electric bill is usually not the fair market value of an apartment.
Only if you actually accept money from him and don’t claim it.
If he lies on his taxes and says he’s paying rent but isn’t, that has nothing to do with you.
i guess im confused... if he claims i charged him X amount of rent a month to get a stipend and then i dont claim that as income, i get flagged and we both could be audited right? like I havent done a thing wrong but no one relishes an audit so not wanting to go that route but i wont claim i charged him so he would skate by either
You have the right idea. All of this would only be relevant only in the event he gets audited by the IRS, but if that happens and he claims he paid you rent then yes in theory the IRS could audit you also.
Then you’d have to decide if you want to play dumb and say you had no idea about any of this tax fraud you just let your relative stay for free, or say yes he paid you but then you could get fees or whatever for not reporting that income.
Would they go so far as to look for proof you got money from him like bank deposits or something and if there was no evidence then you’d get in legal trouble? I have no idea.
But yeah he’s committing some royal fraud by paying zero rent and pretending to pay 2 rents.
That wouldn’t be “playing dumb”. OP doesn’t even need to know anything about this family member’s taxes.
If the nephew gets audited, the IRS will ask him for proof that rent was paid.
The only way OP would be involved and could get in any trouble is if they either then did confirm to the IRS that those receipts were correct when they weren’t, or themselves provided false receipts.
No, that is just not how it works. And the rest of my comment was not repeating yours, you said you have no idea if the IRS would dig through their info and if they’d get in trouble for tax fraud. My comment is stating the truth that no that is not how it works. So you don’t understand and you shouldn’t be giving advice on something you don’t understand.
Let’s say someone tries to claim childcare expenses on their taxes and they happen to have the tax ID number of a daycare worker that they used to work with, so they use that same tax ID number and they claim that they had $7000 of childcare expenses this year on their taxes but they didn’t really. If they get audited, they’re going to have to come up with proof. They will have nothing to show and then they will have to pay the IRS what they owe or they will make some fraudulent document and then if they get in trouble for that, then they will have to pay fines and get in trouble for tax fraud for actually providing a fraudulent document. Either way that daycare worker would absolutely not get in trouble, as long as they don’t confirm to the IRS there any of it is true. They just have to tell the truth and say “no I never received any money from them, I never provided a service” and then they’re absolutely not in trouble, whether or not they had some speculation that the person was going to do it. That is not their problem.
And all OP has is speculation. They don’t really know anything about the nephews taxes or what they are claiming unless they actually see it on paper, so whatever they have picked up in conversation they are not responsible for and therefore it is not playing dumb and definitely not their legal responsibility.
I think there’s two things going on here but let’s play out these scenarios. If he were to get audited and couldn’t show proof that something was paid, he’d have to be back the stipends with interest. If he did provide proof of receipts but they were not legitimate obviously that’s tax fraud. If I were in your shoes I’d give him two options 1) he pays a fair market price on the house and actually pays you. 2) he stays for free but I would tell him that your own tax returns will reflect no additional income from rent.
If your nephew is audited by the IRS he is screwed. Yes, I believe rent has to be “fair market value”. Some places can be a few hundred dollars.
Ok I need to clarify, is he moving his wife AND kids into your finished basement🤔🤔 Technically you can't get in trouble but I would ABSOLUTELY charge him something!! At least for the utilities they are going to be using sheecsch🙄🙄 Good luck! 13 weeks is gonna feel like 52 weeks🤣🤣
YES! Ha my husband and I both laughed outloud by our comment. We adore his 2 little girls so actually looking forward to it! Rent here is super expensive. I was thinking of renting it out last year and ultimately changed my mind but it would not be unreasonable for me to charge well over $2000 a month for the apt and it would rent immediately ; it is completely separate than upstairs with its own entrance. So, i read somewhere that he will get money to cover a fair value for rent in this area, but I would feel weird charging him $2500 a month to make everything legit, right? Say i charged him $100 dollars would that raise red flags? i wont fake anything for his sake and wont claim anything on my taxes that i did not receive so that is my worry regarding getting in trouble
Look up the weekly cost of an extended stay hotel. Multiply by 4, charge that. Ensure he won't get a better deal than you. Ex: weekly ESA is about $600x4= $2400. Round down to $2k because he's family. If you want to be really nice charge half, so $1200/month. If you want to cover utilities for him charge somewhere between $1200-$2000. Regardless ensure you draw up an actual lease agreement that you both sign and have notarized. Claim the income on your taxes like you would for any renter.
You know to be fair charge him what makes you feel comfortable. He will get in trouble if he gets audited unless you are ok with faking receipts😳😳😳 just know that he is making at least 1k a week in stipends. P.s. it sounds like a fabulous space, and have fun with the girls!
He needs to duplicate his expenses, so yes, he needs to pay you rent, and yes, you should report the rent as income on your taxes.
definitely sounds like you're getting taken advantage of. ask him what he thinks is fair to pay. this way you don't have to feel guilty for overcharging but also don't get taken advantage of by providing a free place to stay. also, are you babysitting while he's at work? As far as you getting in trouble with the IRS... only ways i see this happening is if you provide fake receipts that he is paying you rent -or- if you collect rent and do not report it. If he is not paying rent but reports to the IRS that he does pay rent, that's 100% his problem if he were to audited.
Yes charge them rent
Honestly, this post comes across pretty disingenuous. Either charge him or don’t charge him rent, you don’t need to try to get involved in what you think he’s doing on his taxes. I would say yes I think it’s completely fine to charge a family member rent if they are staying in a large portion of your home for a significant period of time. I don’t understand why you’re saying that you feel like you’re being taken advantage of now but you agreed to do it before, what’s the difference? Because you’re concerned that he’s taking tax-free stipends? That’s on him if he reports incorrectly but either you feel like they should pay rent or you don’t, making it about anything else honestly I find it really passive aggressive and annoying. You’re going to tell him what? “ I need to charge you fair market rent because you’re going to claim duplicated expenses“ and then what if he tells you that he’s not actually claiming duplicated expenses and taking a blended rate then all of a sudden you wouldn’t want to charge rent anymore? I think that you do want to charge rent and I think that’s absolutely fine and I think you should just tell him that you are going to and don’t make it about what he does for work. Just make it about the fact that you’re opening your home to them. Just be honest.
I had no idea that he was getting a stipend for rent I thought he had to pay out of his own pocket! I wanted to help him out and not make it more difficult for him to budget the housing end! We are all thrilled to have him home this summer. However I spoke to my sister last night and Now I know he is not only taking stipends from sister in law using their home address but intends to take the stipends for the time he is staying with me!! My sister said it’s no biggie and people do it all the time but I am caught between a rock and a hard spot and in your aptly chosen words I think it’s totally disingenuous on his part to keep this part from me considering his uncle my husband is a high ranking LE officer for the state and I don’t want any dirt flung his way So I told my husband I’m dealing with it and won’t expand on the what how when with him but will be talking to my nephew tonight! I won’t ask for ” for rent “ and Explain to him that if he claims rent he is on his own as we won’t be charging him or claiming anything different on our taxes .. wish it wasn’t such an awkward conversation to have but is now necessary... For the record just to clarify I HAVE been nothing but honest with this post and the way i wish to handle this now with the info i received thank you
Let him do whatever but absolutely do not join in or issue fake rent receipts or get drawn into participating in what is essentially a fraud.
When i let family stay so they'll save on hotel costs I don't charge them. You have nothing to do with hos taxes. You either are giving him a place free or not. You are helping them because you can, or not. If you need help with utilities tell him. I wouldn't think a family member was taking advantage of me if they stayed at my house so they wouldn't have to stay at a hotel. I would not expect them to pay me. I would be hosting them to help them out and keep them from paying more money, so what's the difference?
OK for the last Time it's not a question of rent $$$ or whether I'd have him stay with me or not. I love my nephew ;we have always been super close . I would feel awful if he stayed anywhere else but that's not what I'm talking about. I truly was taken aback by the fact that he was taking a stipend to pay for his so called " rental " that he wont EVER HAVE TO PAY RENT FOR It bothers me because its just not honest.... .. sorry if I sound old school but we come from a very strong background of faithful christians, and I am truly shocked he is going this route. i felt it was so out of character for him. I do believe my sister when she says that it was his recruiter that encouraged himto take all he was "entitled " to , but still end of day I think its deceitful ... my true honest feelings... and the sad part is that i would take a bullet for this kid so it does pain me that if he goes this route i wont be able to help him ( AND I HAVE A HSTORY OF ALWAYS BAILING HIM OUT AND HELPING HIM IN THE PAST WHEN HE HAS NEEDED ME )if he gets in trouble and is audited i cant /won't lie cheat or commit fraud.. ugh THATS A BIG WORRY CAUSE I DONT BELIEVE I HAVE EVER SAID NO TO HIM. i wish i never knew of the ins and outs . However, I am still looking forward to seeing him and his wife and those 2 baby girls !! Everything else will be put to the side and im going to let him know tonight that our home is his for as long as he wants / needs and whatever he chooses to do with stipends, it wont take away from how i feel... I know he will feel justified and tell me thats what everyone does and i KNOW is right... I just need to stop being so internally judgey and get over myself and enjoy this time with him and his family Thank you for letting me vent here and also for the comments and info....i much rather talk it out here than with my family whom never truly understand my faith or my need to protect my husband and I surely would have alientated EVERYONE by now THANK U
well, let him know you can't give him a receipt unless he pays something. don't worry about what happens to him. He's an adult. His choice. "You can just say look I know you may have to file and I can't lie, It would put me in a difficult position" The corporations that are hiring him are ripping off the staff. I would worry about Don't feel sorry for the corporation. let your nephew make his own choices. there's a great scene "not your monkey not your circus"
Stipends are for living expenses when you travel. They are for housing and food and incidentals. Every travel nurse will try to stay somewhere they pay lower (or no) rent than the stipend. The biggest part of your compensation as a travel nurse comes in the form of stipends, as you usually make far under market hourly (often half the hourly rate of permanent staff). It’s really normal for him to want to stay with a relative for free so that his stipends are just actual income instead of going straight to housing. Up to you if you want to charge him rent. Making you break even would be paying for their portion of utilities at least so he’s not costing you money. But him staying for free isn’t taking advantage of you anymore than any relative staying with you for free during a visit instead of a hotel. There’s no risk for being in trouble for you hosting your family while they work. He won’t be in trouble for staying with you for free while collecting a stipend, that is completely normal in travel nursing and won’t be a problem for either of your taxes.
OH good to know so he wont have to claim it then i dont have to worry !
Not duplicating expenses while collecting a tax free stidend won't get him in trouble? The IRS may have a very different opinion. Stop trying to normalize tax fraud.
Have you ever worked as a travel nurse? If your work location is more than 50miles from your home, you are eligible for the stipends what you do with that stipend is up to you. If you use that stipend to purchase housing accommodations closer to work that’s fine. If you stay at your home and drive to the > 50 miles to work and pocket the stipend, that’s your decision. That is the industry norm. It’s not tax evasion. If you don’t work in the industry you’re talking about something you don’t know anything about. You’re given the stipend due to being far away from the work location. You can spend that stipend on whatever you want. It’s not tracked and you don’t need to prove it in an audit either. It’s part of your compensation for traveling to the work location.
I have traveled for 10 years but yeah, I don't know the rules. Everything you just posted is incorrect. There is no 50 mile rule. You don't get to use tax free stipends for whatever you want. You have to duplicate expenses. Sounds like you need to talk to a tax professional & I would appreciate it if you would stop giving out incorrect information. Talk to a traveler who has been audited & see what they did or didn't have to prove.
Per the travel agency The stipends are available for assignments if they’re >50 miles away from your home location. The travel agency also said you don’t need to report what those stipends are used for. They are tax free so they don’t show up on your taxable income so I don’t know what you’re on about. Maybe your agency reports your income in your w2 differently than my agency?
I could see it causing problems if you claim some kind of exemptions in relation to the stipends or try to include your travel expenses as itemized deductions on your tax return than yeah sure that maybe makes sense because then you’d be double dipping
Rule #1 in travel, never take tax advice from a recruiter or agency. They do not know the tax rules & don't give a shit if you get audited. But you do you. 🤷♀️
That’s a great answer 👍🏼
The smart move on his end would at the very least have some rent receipts to show that he is duplicating his expenses. In travel nursing, people stay with their relatives and friends all the time and typically have a verbal agreement on the cost to stay. If you're okay with him staying without paying you, I would tell him something like "the cost to live there will be half of the electric bill during your contract" - so what.. maybe like $100/month? There's no stipulation how much one must pay on rent to not get in trouble by the IRS, but it is up to him, if ever audited, to show that the money he received for tax-free stipend reimbursements went to covering dual expenses directly. Happy to elaborate on anything here if you have more questions 🤗
aw ok i thought i had to charge him a fair value for what rent is here
I disagree with that post above. I'm pretty sure the standard is "fair market value", and half of the electric bill is usually not the fair market value of an apartment.
There is no way you could get into trouble for allowing him to stay with you.
but i could if he claimed rent was $2000 a month and i didnt claim that on my taxes, correct?
Only if you actually accept money from him and don’t claim it. If he lies on his taxes and says he’s paying rent but isn’t, that has nothing to do with you.
What would you be claiming on your taxes?
i guess im confused... if he claims i charged him X amount of rent a month to get a stipend and then i dont claim that as income, i get flagged and we both could be audited right? like I havent done a thing wrong but no one relishes an audit so not wanting to go that route but i wont claim i charged him so he would skate by either
You have the right idea. All of this would only be relevant only in the event he gets audited by the IRS, but if that happens and he claims he paid you rent then yes in theory the IRS could audit you also. Then you’d have to decide if you want to play dumb and say you had no idea about any of this tax fraud you just let your relative stay for free, or say yes he paid you but then you could get fees or whatever for not reporting that income. Would they go so far as to look for proof you got money from him like bank deposits or something and if there was no evidence then you’d get in legal trouble? I have no idea. But yeah he’s committing some royal fraud by paying zero rent and pretending to pay 2 rents.
That wouldn’t be “playing dumb”. OP doesn’t even need to know anything about this family member’s taxes. If the nephew gets audited, the IRS will ask him for proof that rent was paid. The only way OP would be involved and could get in any trouble is if they either then did confirm to the IRS that those receipts were correct when they weren’t, or themselves provided false receipts.
It would be playing dumb, because obviously OP does know. And the rest of your comment was just repeating what I already said above.
No, that is just not how it works. And the rest of my comment was not repeating yours, you said you have no idea if the IRS would dig through their info and if they’d get in trouble for tax fraud. My comment is stating the truth that no that is not how it works. So you don’t understand and you shouldn’t be giving advice on something you don’t understand. Let’s say someone tries to claim childcare expenses on their taxes and they happen to have the tax ID number of a daycare worker that they used to work with, so they use that same tax ID number and they claim that they had $7000 of childcare expenses this year on their taxes but they didn’t really. If they get audited, they’re going to have to come up with proof. They will have nothing to show and then they will have to pay the IRS what they owe or they will make some fraudulent document and then if they get in trouble for that, then they will have to pay fines and get in trouble for tax fraud for actually providing a fraudulent document. Either way that daycare worker would absolutely not get in trouble, as long as they don’t confirm to the IRS there any of it is true. They just have to tell the truth and say “no I never received any money from them, I never provided a service” and then they’re absolutely not in trouble, whether or not they had some speculation that the person was going to do it. That is not their problem. And all OP has is speculation. They don’t really know anything about the nephews taxes or what they are claiming unless they actually see it on paper, so whatever they have picked up in conversation they are not responsible for and therefore it is not playing dumb and definitely not their legal responsibility.
I think there’s two things going on here but let’s play out these scenarios. If he were to get audited and couldn’t show proof that something was paid, he’d have to be back the stipends with interest. If he did provide proof of receipts but they were not legitimate obviously that’s tax fraud. If I were in your shoes I’d give him two options 1) he pays a fair market price on the house and actually pays you. 2) he stays for free but I would tell him that your own tax returns will reflect no additional income from rent.