Rental income tax


I have someone who owns a house that they rent out to their son and their wife who pay rent direct to the parent. The son and wife pay all the household bills (no mortgage) and the bills are in the sons name. Is the rent paid to the parents taxable?

It is only the son and wife that live in the house.

Thanks all!


  • Hi

    Can you outline the situation better so it is clear who owns the house, who receives the income, who's wife it is (the owner's or the son's)?

    If the owner of a property doesn't live in it, and they receive a payment from the occupants of that property in exchange for being able to live there, then that income is taxable.

    Benjamin Fabi 
  • Hi Benjamin,

    It is owned by parent 1.

    Lived in by son and son's wife only.

    Son and Wife pay rent to parent 1.

    Think you have cleared it up though that it is taxable income.

    Many thanks

  • benjaminfabibenjaminfabi Moderator

    No problem.

    Yes it is taxable income. Relationship to the owner doesn't matter.

    Benjamin Fabi 
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