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Updated about 3 years ago on . Most recent reply

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Thomas Vida
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Rental Property Request

Thomas Vida
Posted

I have been renting out a small bungalow on my property. I have always claimed my rental money with the IRS to keep things honest. My present tenant gave me notification she is moving out on November 27th even though her lease expires on December 31, 2021. I will be notifying her shortly that because of the lease she signed she is still responsible for paying me Decembers rent. Last week she sent a text message to my wife asking, if the apartment management gets in touch with me shortly would I make sure I tell them she has been paying rent of $900 per month for the last year or so. Her rent is only $525 per month. The notification we did receive from the apartment management is very detailed and precise concerning her application. I am very reluctant in falsifying her rent by $375 a month, especially implications with the IRS because then it would appear I was understating my rental yearly amount reported to them. Should I just fill out the paperwork from the apartment verification form and just be honest and put down $525 per month and be able to sleep at night? Also, why would a tenant want to inflate her monthly rental amount? 

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Greg Scott
Pro Member
#4 General Real Estate Investing Contributor
  • Rental Property Investor
  • SE Michigan
5,642
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Greg Scott
Pro Member
#4 General Real Estate Investing Contributor
  • Rental Property Investor
  • SE Michigan
Replied

The IRS doesn't care at all about the paperwork you are talking about.  She is probably applying for a more expensive apartment and wants to make it look like she can cover that rent.

Still, why would you lie just because a tenant asks?  What is your integrity worth to you?

  • Greg Scott
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