IRS taxes on rental income

i may be misinterpreting what you are saying, but i would never advise not paying your taxes under any circumstances. just because they pay you in cash doesn't mean that isn't income and sooner or later, you will probably get caught. in order for others to deal honestly with you, you have to be honest yourself. just my opinion and i hope i misunderstood what you were trying to say.

I've been audited two years in a row by the IRS because they didn't believe what I was claiming, dependents, etc. I won both times myself.
My point is, even if it's cash they'll find a way or a missing link that you won't be able to explain or have a paper trail for.

After re-reading your post, my suggestion to you is to grab an accountant and make sure ALL your numbers are correct for the past several years on your returns. The farther back something is when the IRS finds out about it, the more it will hurt.

If you don't like paying taxes move out of the country.
There's too much money to be made honestly, why take the risk?

Just my 2¢

I prefer to be honest and pay my taxes, but thats just me. I think most of the folks here on this site are here to help others out but not to show people how to cheat and get around on paying their taxes.

Go to jail Do not pass go Do not collect $200

(Old Monoply saying - true today)

By the way the Irs is most probably watching your comment about "cash being invisible" Hate for you to visit their invisible cell.

If you really want cash buy a carwash "Cash is King" but expect to go to the top of the list for IRS and State audits - every year.

You can get taxed by the IRS regardless of whether you pick up your money or it's deposited into your account.

If you're paying taxes, that means you are making money-you should be happy!

I don't believe anyone on this site is going to advise you on how not to pay taxes; on this site we exchange ideas and information on how to invest and make money!

Valerie

Don't be a fool.

Remember that tax laws are what took down Al Capone, not the FBI.

If you don't like to get the rent every month, then you can sign up for a service that extracts it every month from the tenants bank account automatically.

If you don't like taxes, then find yourself an aggressive accountant who understands the multiple shades of grey in the tax code and where the line of "no return" actually is at.

If you don't what to do either and are seriously thinking about defrauding the IRS, then it might be best for you to exit the rental business and go find yourself a JOB where taxes are taken out on a "pay as you go" method.

The risk-reward ratio is just not worth it.

thanks for all your help guys. No, I was not looking to cheap the system nor cut corners. I was told by my agent it's best to collect rental income by cash compared to checks since I did not have to include it when i file my income tax at the end of the year.

Thanks again for all your answers, this forum has a great deal of knowledge and wealth of information!

Get yourself an honest agent so you don't end up in trouble down the road. They won't be the ones the IRS come after if you're the one following their advice.

Good luck!

you're making money, but also because you have rental income whatever expenses you have to pay out(heat, water, sewer, upkeep) is deducted from the income so in some cases you won't have to pay anything.

Also the increase in income benefits you when you want to be considered for additional loans and programs.

Be happy you're making money in this climate.

http://finance.****/career-work/article/113032/little-house-secrets-grea...

So I googled it and found it:
http://finance.****/career-work/article/113032/little-house-secrets-grea...

Huh, looks like this site truncates the link too much and makes it unusable

Let's try this:
http://tinyurl.com/5thzts3

There we go, that works

This is interesting, if we can get an aged Corp or LLC, I wonder if it will be easier to get a LOC with a bank?

Thanks for the link Steve!

It's best to collect rent by cash if you don't want to deal with checks returned for NSF, it has nothing to do with reporting it on your taxes. Your agent is a fool. If you follow your agents advice, you will have nothing but trouble down the road. Bottom line is, whether by cash or check, it's still income and has to be declared.

No funny business here...when you get audited and bring in your water bill, every wash uses x gallons of water. xxxxx gallons of water used should equal xxx number of washes @ $4.50 per wash. Same with laundromats. Hopefully what you claim is close to what the formula works out to. Best cash cows are coin-op pool tables, video games, condom machines, etc. where there is nothing to tie the number of uses to.