22rcoffey
May 24, 2012, 12:25 PM
We have signed up with a private school to host an international student. The students family will pay the school and in turn, the school will issue a monthly "stipend" between $600-$800.
I asked the Business Administrator about how this "income" will be reported and he told me it will be on a 1099, under "RENTS".
I understand that anytime income comes this way, there is going to be some steep taxes owed.
My questions is HOW DO I MINIMIZE THE TAXES OWED?
If I keep detailed account of all the expenses incurred providing for the students basic needs, can I deduct them against the income?
I don't want to get stuck with a big tax bill at the end of the year.
I asked the Business Administrator about how this "income" will be reported and he told me it will be on a 1099, under "RENTS".
I understand that anytime income comes this way, there is going to be some steep taxes owed.
My questions is HOW DO I MINIMIZE THE TAXES OWED?
If I keep detailed account of all the expenses incurred providing for the students basic needs, can I deduct them against the income?
I don't want to get stuck with a big tax bill at the end of the year.