What are the tax implications for payment from a parent living in my home?
My mother lives with me & I am her total care giver 24/7, for which she pays me well, (at her instance ) as an alternative to a nursing home. I take care of all expenses with the exception of her medical needs, for which she has insurance.
She is legally blind, has limited hearing & uses a walker. Originally her payment to me was at the "gifting limit" but as she now requires more help she has raised the amount (again at her instance). Do I have to declare it as income & can I deduct the gifting allowance from the reported amount? And can she declare it on her tax return as an expense?