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Does this need to be done for things like splitting rent? I'm charged the full amount monthly and my partner sends half to me.
by fermentation 5y ago
Does this need to be done for things like splitting rent? I'm charged the full amount monthly and my partner sends half to me.
- vorpalhex 5y agoYour landlord will be in trouble if they are not reporting your payment. As you are just splitting a payment you would mark it as personal.
- ne0flex 5y agoI was regarding comments on Reddit regarding this. One person from California gave an anecdote from a few years ago saying he would pay rent from his account and his roommate would give him their half in cash. He ended up getting flagged by the IRS for having $8K in deposits. He tried to dispute with the IRS, showing rent receipts and deposits, but he still ended up having to pay taxes on the $8K in addition to penalties. I'd imagine some similar situations will crop up with this change. (Let's face it, the IRS will probably be looking at all transactions and not just those marked as business transactions.)
- stjohnswarts 5y agoKeep all your paperwork, the tax man will be knocking otherwise.