have them pay cash and dont claim it

NeuroSynapsis said:

hire an accountant

Some accountants told me to use schedule E? To report the rental as income, also report expense. But what can be considered as expense? Utility bills, HOA, repair? That sounds like a rental business.

Nick1394 said:blok said:have them pay cash and dont claim it
Hehe..what if I just cash the check instead of deposit the check to my bank account. Will it be the same?

not really, there would still be a paper trail. But your chances of getting audited are pretty low still

Nick1394 said:blok said:have them pay cash and dont claim it
Hehe..what if I just cash the check instead of deposit the check to my bank account. Will it be the same?

Just have them pay in physical CASH.

dmlavigne1 said:blok said:have them pay cash and dont claim it

If it's blok, don't take anything but cash no matter what you do on your taxes.

Then again, if it is blok, he'll probably want the Cash Back after paying.

Cash Back? 5%?

Nick1394 said:Another thought.
What if I have them write the check to my mortgage account? So, they help me to pay off my mortgage. What is the tax consequence on this way?Bad idea. What happens when one of their checks bounces?

Nick1394 said:dcwilbur said:Nick1394 said:Another thought.
What if I have them write the check to my mortgage account? So, they help me to pay off my mortgage. What is the tax consequence on this way?Bad idea. What happens when one of their checks bounces?
Well, what if I just use their payment as extra payment to my mortgage? At least it could help me to reduce principle faster. Don't know if it could get any other tax issues involved though..You already know what you are supposed to do (which is the 'best' way you initially asked about), and there are infinite "what if I...." possibilities (which you seem to be more interested in finding).

What not cut the charade and just ask "I want to rent a couple rooms under-the-table. How do I get away with it?"

If you rent out a portion of the home, you can deduct a portion of utilities, repairs, and bills. Just make sure to document what you're deducting: i.e. there's 3 people living there including yourself, you can deduct 2/3rds of the electricity and gas. If you make repairs in the common area, you can deduct 2/3rds. If you make repairs to one of your tenants room, you can deduct the entire cost of repairs. Etc, etc.

Furthermore, you can also claim a depreciation, but you should be careful about that as it might have tax implications when you sell.

IRS Forms and Publications are actually easier to understand than you might expect. RTFM.

Then, once you've done that, go to your local library and find the Nolo Press book on how to be a landlord (which is basically what you're looking to do).

oh, and just pay the damn tax already. doing otherwise is to mooch off honest folks. you'll want to get your tenant on a lease of some sort (spells out your and their rights and obligations), and once you've done that being paid in cash won't help you (especially since any sensible tenant would want a receipt for their payment).