Q: Does a retired person who is drawing life insurance and social security have to claim any profit on their taxes
Does a retired person who is drawing life insurance and social security have to claim any profit on their taxes, i.e. if they are renting a piece of property or a house and only want to receive cash for rent.
A: Rent paid in cash is income which must be reported on your tax return.
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A: Generally, rental income is considered taxable income and should be reported on the individual's tax return. This includes rental income received by a retired person who is also receiving social security and life insurance benefits. However, there may be deductions and credits available to offset some of the rental income and reduce the tax liability. It is recommended that the individual consult with a tax professional or use tax software to accurately report rental income and determine any available deductions or credits.
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