Landlord registration

Dave H

New Member
Jurisdiction
Pennsylvania
Does a landlord have to register with any governing body to become a landlord? How do they claim their income if they only accept cash or personal check?
 
Does a landlord have to register with any governing body to become a landlord?

Not necessarily to become a landlord but some states have different property tax rates for rental so the property itself would have to be registered as a rental. I couldn't find anything like that in PA so you'll have to check with your state or local property tax collector.

How do they claim their income if they only accept cash or personal check?

By keeping careful records and filing Schedule E on their income taxes:

https://www.irs.gov/pub/irs-pdf/f1040se.pdf
 
Not necessarily to become a landlord but some states have different property tax rates for rental so the property itself would have to be registered as a rental. I couldn't find anything like that in PA so you'll have to check with your state or local property tax collector.



By keeping careful records and filing Schedule E on their income taxes:

https://www.irs.gov/pub/irs-pdf/f1040se.pdf
And if they don't report the income?
 
I'm not in Pennsylvania, so I don't know for sure, but I doubt it.



I don't understand the question. What do you mean by "claim their income"?
As in they are taking it as cash and not reporting it to the IRS or local government. And not making needed repairs to the property and home.
 
And not making needed repairs to the property and home.

Nothing wrong with that. They'll just get reduced rent and low life tenants who will make the property even worse.

Is this about the house your wife owns with her parents?

If yes, what are you trying to learn from this discussion and what is your goal?
 
As in they are taking it as cash and not reporting it to the IRS or local government.

So...your question was "[h]ow do they claim their income if they only accept cash or personal check?" I still don't understand the question. How do they do it? The same way anyone else does: on their income tax returns. This statement of clarification seems to indicate that you are talking about situations in which landlords don't claim rental income on their taxes, but that makes the question you asked even more ambiguous. Might want to start over from scratch.

And not making needed repairs to the property and home.

What about it? And what does this have to do with "claiming" or not "claiming" income on tax returns?
 
They are trying to raise the rent 50% and make the tenants pay the taxes and HOA dues.

Bummer. They'll likely lose tenants.

That is what I needed to know. Who to contact to report them. I figured the IRS, but thought some smaller local government agencies would be interested as well.

"Small[] local government agencies" typically have their own problems to deal with without being concerned whether some local landlord is or isn't claiming income properly on federal or state income tax returns. Among those problems is typically a lack of funding to deal with things that are within their purview, much less things outside their purview.
 
They are trying to raise the rent 50% and make the tenants pay the taxes and HOA dues.

So?

That's between them and the tenants. What's it have to do with you?

Who to contact to report them. I figured the IRS, but thought some smaller local government agencies would be interested as well.

The IRS has a tax fraud hotline:

How Do You Report Suspected Tax Fraud Activity?

I imagine the PA Dept of Revenue also has one:

PA Department of Revenue Homepage

Keep in mind, though, if this is the property that your wife is part owner of, the consequences are on her, too.
 
So...your question was "[h]ow do they claim their income if they only accept cash or personal check?" I still don't understand the question. How do they do it? The same way anyone else does: on their income tax returns. This statement of clarification seems to indicate that you are talking about situations in which landlords don't claim rental income on their taxes, but that makes the question you asked even more ambiguous. Might want to start over from scratch.



What about it? And what does this have to do with "claiming" or not "claiming" income on tax returns?
The people in question are not reporting their income on 2 rental properties to the IRS. They are also trying to get more and more money out of the tenants every chance they get. They will not fix or repair outdated or broken systems on the home without being pushed extremely hard, and when they do fix something they send the tenants a bill for it. I realize this is a very strange situation. I hope this cleared it up for you.
 
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