Your brother is short on cash and cannot pay his rent this month. You pay his rent for him. Is...
Question:
Your brother is short on cash and cannot pay his rent this month. You pay his rent for him. Is this taxable income to you or to him? Do you get a deduction? Explain.
Rent:
The amount that organizations and individuals pay to use another person's space for a specified time is known as rent for the space and is treated as an expense in the payer's tax return and an income in the receiver's tax return.
Answer and Explanation: 1
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View this answerIf a person pays tax for their brother, the amount will be treated as a gift for the brother and taxable in the brother's hands. The person who...
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Tax Incidence: Definition, Formula & Example
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Chapter 5 / Lesson 7
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Learn what tax incidence is. Understand how to use the tax incidence formula for calculating tax incidence. See the impact of elasticity on tax incidence.
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