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I normally rent out my basement for $800 per month. Is it possible to do a nanny share with us offering room and board as an exchange (plus a smaller stipend) and then have the other family pay the majority of the nanny's wages? We wouldn't be offering minimum wage since the majority of the earnings would be given in room and board. Obviously this is not attractive for every nanny, but housing is expensive and sometimes someone wants to live in.
Legally and tax wise, could this work? |
| I'd think it all depends on how you word the written agreement. You'd have to get professional help with that. Where do you live? |
| South Arlington. |
| Professional help like a lawyer (what kind?) or accountant? Trying to do things the right way…. |
| Is the basement a full apartment? |
A good labor attorney. It would be well worth the cost to make sure that what are are doing is legal. |
| Basement, opens out to the patio (full size door, lots of light) and bathroom. Shared kitchen. |
A real estate lawyer. But I'd first find a nanny who's interested in your proposal, so your agreement can accommodate her interests, as well. Do you know of any interested family? You might want to start looking around for that too. |
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OP here. When a family is a host of the nanny share, what are the potential liabilities? Are you running a "business" in your home? What happens if something happens to the other baby or nanny in my home? What are the downsides to hosting??
On the other hand, we could just rent our basement like we normally do and pay for the nanny share elsewhere. It really doesn't matter as it will come out to the same amount of money either way. I'm just worried about any legal issues that might arise by having other people in our home. Obviously we have homeowners insurance. |
| In same localities, nanny shares are actually illegal. I happen to know that in Arlington, local law wants the nanny to get a home daycare license under these circumstances. As we know, however, most families doing a share ignore their local laws. |
some, not same |
| OP is right about the liability problem. Probably best to keep renting out your basement as you've been doing. |
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