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i am a new landlord . i rent a small condo apartment i own. it seems to me that it is pretty simple to get a way with not declaring rental income on your income tax returns. (not that i have any intention of doing that, of course) it’s not like you get a W-2 or a 1099 that the government knows about. all i get is a check from my tenant every month. how would the government know whether or not I’m renting out my apartment. aren’t i correct? am i missing something.


7 Thoughts on a LANDORDING question?
  1. Reply
    February 10, 2013 at 5:44 pm

    I suppose there’s no real way they could know. However, if you have a rental property that you make money from, you are supposed to classify that income as such on your income taxes.

  2. Reply
    February 10, 2013 at 5:51 pm

    You’re tenant will be claiming their rental deduction on their taxes, and the IRS will cross-reference their address to the owners taxes. The only way to not have to claim it is if they don’t claim it either.

  3. Reply
    February 10, 2013 at 6:07 pm

    There is no rental “deduction ” . Tenants spending money on rent is the same as tenants buying a cheesburger at McDonalds. However there are certain advantages with being able to deduct expenses associated with the ownership of the property and theoretically that income could be reported by a tenant, although there would ordinarily be no reason for them to do this.

  4. Reply
    February 10, 2013 at 6:15 pm

    I agree with Piper—-you can take a stab at not claiming the income–but most likely they will claim their renters income to the IRS.–it may or may not come up for audit in 5 years and cross-reference too you—it is your gamble–and their is no true answer—i myself–have an accountant—that is creative–and makes up my rents as legit deductions.

  5. Reply
    Big Deal Maker
    February 10, 2013 at 6:36 pm

    Here is the problem that everyone seems to be missing here. If you get caught not declaring the income that will get a stint in the Big House.
    On the income property you get to use the interest payments and every dime you put into the condo as a tax write off. Also you have the depreciation value. So it would most likely offset each other.
    But as far as the Government is concerned they would know it when you show you are paying interest payments on a condo. Then they would only need to see who is living there. And it is an easy trip to that Big House.

  6. Reply
    February 10, 2013 at 7:07 pm

    If you own a piece of property and are renting it out. You must show the rent as an income. The benefits however will most likely be an advantage for you

    It can be a benefit as a major tax deduction. You can set it up on a depreciation schedule which will help with your deductible. Any repairs are deductible. Your property tax and Insurance is deductible. Part of you telephone bill, computer ink and printing paper is deductible any mileage associated with your rental business is also deductible. Stamps and other office supplies are deductable.

  7. Reply
    Classy Granny
    February 10, 2013 at 7:25 pm

    What your missing is the deductions you can take when you have rental property. You have expenses. Part of the taxes are deductible. I let a CPA do my taxes and I always take a loss on the rental making my refund bigger

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