I take care of my elderly mother (who lives with me) whose health is declining. She is close to qualifying for Medicaid but still has some savings. An Elder law lawyer, suggested that she could pay me rent and that wouldn't disqualify her from Medicaid once her saving were to the proper level.
If we create a rental agreement will this money be seen as taxable income for me?
Is there another type of agreement that would be allowed under Medicaid but avoid the tax hassle?
Mark - North Carolina