Should we rent out the apartment over our garage in exchange for free housekeeping?
Dear Quentin,  My wife and I are both in our mid-70s and are unlikely to downsize from our present home, which has three bedrooms and offers single-floor living. The home also includes a 540-square-foot guest suite on a second level above our garage area, with a separate entrance. I have told my wife that at some point, we might consider working out an arrangement with a student or individual willing to trade living space for some agreed-upon house cleaning work. I would like to learn about pitfalls, and even become more educated so I can ask intelligent questions of an attorney if the idea merits consideration. Exploring Options  Dear Exploring,  It would typically be a smart idea to rent out the unused apartment over your garage, given that you dont have any plans or need to downsize. But think twice if you dont need the money. If you took the route you suggest, you would likely have to declare your arrangement to the Internal Revenue Service. The IRS refers to such arrangements as bartering for goods and services. That is, there is an exchange of goods and services (apartment and housekeeping duties, in this case) but they have a fair market value. Your tenant/housekeeper would get a plum deal. You must include in gross income in the year of receipt the fair market value of goods or services received from bartering, according to the IRS. Usually theres no exchange of cash. An example of bartering is a plumber exchanging plumbing services for the dental services of a dentist.  You can read more about that here. However, I have concerns. Firstly, you will end up choosing someone (and vice versa) who needs somewhere to live rather than someone who actually wants to become your housekeeper. Secondly, if it doesnt work out, they are still living above your garage. It is an unnecessary blurring of boundaries and responsibilities. If you want to put your flat to use, I suggest renting it out to someone with a lease and avoiding any casual arrangements that could leave you exposed legally if, say, that person had an accident on your property. Tread carefully. You can email The Moneyist with any financial and ethical questions related to coronavirus at qfottrell@marketwatch.com, and follow Quentin Fottrell on Twitter. By emailing your questions, you agree to having them published anonymously on MarketWatch. By submitting your story to Dow Jones & Company, the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties. Check out the Moneyist private Facebook FB, -0.01% group, where we look for answers to lifes thorniest money issues. Readers write in to me with all sorts of dilemmas. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns. More from Quentin Fottrell: