Are there any tax consequences if I "sublet" rooms in my apartment: I live in a 3 bedroom apartment, that I am the sole lessee with the land...

Question

Are there any tax consequences if I "sublet" rooms in my apartment: I live in a 3 bedroom apartment, that I am the sole lessee with the landlord. The lease executed with the landlord allows for 3 adults to live in the apartment but only lists me. Do I have to consider their portion of the rent as income even though I don't own the premises? If so, 3 additional questions: A. If their "rent" is a "gross" payment to cover "included" utilities and shared costs, does that change/impact things? B. I believe I can deduct a few items against the income: how would I allocate the overall rent for the entire apartment? (We share the common areas such as kitchen, living room and parking lot.) C. Can I deduct the utilities and shared costs (such as toilet paper, paper towels and etc.)?

Answer

"Are there any tax consequences if I "sublet" rooms in my apartment:" ?

YES.

"Do I have to consider their portion of the rent as income." ?

YES. Of course you're subleasing and thus receiving rental income. The reported amount depends though because they only have part of the property.

You should see a local tax professional for more details.