Landlord registration
- Thread Starter Dave H
- Start date
zddoodah
Well-Known Member
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"?
adjusterjack
Super Moderator
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?
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.
adjusterjack
Super Moderator
Nothing happens until the IRS finds out. Then the SHTF.
adjusterjack
Super Moderator
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?
They are trying to raise the rent 50% and make the tenants pay the taxes and HOA dues.
zddoodah
Well-Known Member
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?
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.
zddoodah
Well-Known Member
Bummer. They'll likely lose tenants.
"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.
adjusterjack
Super Moderator
So?
That's between them and the tenants. What's it have to do with you?
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.
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.
Thank you for the info. We are the tenants in the home her name is not on.
adjusterjack
Super Moderator
Then move if you don't like what's going on.
If you stay, for whatever excuses you make for staying, then you are a willing participant in whatever abuse is being heaped on you.
That being said, PA doesn't have much of a landlord tenant statute, but read it and see if there are any remedies in it:
Browse - Unofficial Purdon's Pennsylvania Statutes from Westlaw
zddoodah
Well-Known Member
Just to clarify: you've personally seen these persons' state and federal income tax returns, as filed?
Nothing wrong with that. It's the whole point of running a business.
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