I’m contemplating renting my currently unoccupied garden apt. to a business for a 6-month period…assuming the tenant won’t pay cash, do I need to worry about paying taxes on the rent/mucking up my tax situation/etc.?


What's Your Take? Leave a Comment

  1. DIBS you are correct. I don’t know those accounting terms, just know that we plug these #s in to Turbo Tax and that’s the rough equation.

  2. Do you really want to get audited? Spend $300 (tax deductible) a year and get a tax attorney to do your taxes. Once you land on the IRS and NY Dept Taxation and Finance radar screens you’ll be there forever. They can also file a lien on your property. Al Capone killed dozens of people and went to jail for tax evasion – think about it.

    There is another post on this blog today about a neighbor calling 411 about what they think is work being done without a permit, this city is full of people who have nothing better to do than report their neighbors to the government for perceived infractions of the law.

  3. For example, our rentals are half our building, so this year 50% of what we spent on chimney lining and facade repair will be deducted from our rental income,

    Those items are technically capital improvements and should be added to the cost basis of the property and then 50 amortized against the tenant income.

    Doing work without permits is one thing. Blatant tax fraud carries much higher penalties as newsouthsloper says.