3 ms·

Perhaps not entirely in scope for HN, but I had never heard of such thing before. This was in Canada, does the US have similarly absurdly unfair tax codes?

mytailorisrich 3y ago
I know it is the same if the UK. If the landlord is not resident and bit registered with tax authorities then tenant or agent must withhold 20% tax from rent.
- dghughes 3y ago
  Our tax system in Canada is probably based on the UK system.
- cassianoleal 3y ago
  I had no idea about this. It's so backwards! Does that mean if I'm a tenant I need to keep track of my landlord's residential status? Say I was aware of this regulation. I signed a contract with a landlord who is in fact a UK resident. If my landlord changes his residency without telling me, am I liable for his taxes? Furthermore, how can I actually verify my landlord's residential status in the first place? Is that publicly available information?
  - Eddy_Viscosity2 3y ago
    Looking in to it and yes, if you landlord changes residency you are on the hook for his taxes if he doesn't pay. This is true even it he doesn't tell you, ignorance is not a defense. I think you can verify residency through the tax bureau. But you'd have to do it every month to sure.
  - mytailorisrich 3y ago
    The taxman always wants to be paid and as they make the law they can go after the easiest target. In this case the money is with the tenant/agent so that's who they go after. Of course the landlord would then owe the money to the tenant if the tenant had to pay out of their own pocket. I also expect that a non resident landlord would usually use an agent, in which case the tenant should be 'safe'.
Turing_Machine 3y ago
If you pay a contractor more than $600 over the course of a year, you're required to file a Form 1099 with the IRS and send a copy to the contractor. That's if the contractor has provided you with a Taxpayer Identification Number (Social Security Number if it's an individual). However, if the contractor doesn't give you the number, you, as the person hiring the contractor, are required to withhold 24% of the payment and fork it over to the IRS (the contractor can get it back if there's an overpayment at the end of the year). That seems pretty similar.
- tzs 3y ago
  Before everyone panics because they did not withhold 24% when they had a new water heater installed in their home or a level 2 charger installed in their garage, it should be noted that those requirements are when a business hires a contractor. When you are an individual and hire a plumber or electrician or handyman or similar to do work on your home it does not apply.

mytailorisrich 3y ago

I know it is the same if the UK. If the landlord is not resident and bit registered with tax authorities then tenant or agent must withhold 20% tax from rent.

dghughes 3y ago
Our tax system in Canada is probably based on the UK system.
cassianoleal 3y ago
I had no idea about this. It's so backwards! Does that mean if I'm a tenant I need to keep track of my landlord's residential status? Say I was aware of this regulation. I signed a contract with a landlord who is in fact a UK resident. If my landlord changes his residency without telling me, am I liable for his taxes? Furthermore, how can I actually verify my landlord's residential status in the first place? Is that publicly available information?
- Eddy_Viscosity2 3y ago
  Looking in to it and yes, if you landlord changes residency you are on the hook for his taxes if he doesn't pay. This is true even it he doesn't tell you, ignorance is not a defense. I think you can verify residency through the tax bureau. But you'd have to do it every month to sure.
- mytailorisrich 3y ago
  The taxman always wants to be paid and as they make the law they can go after the easiest target. In this case the money is with the tenant/agent so that's who they go after. Of course the landlord would then owe the money to the tenant if the tenant had to pay out of their own pocket. I also expect that a non resident landlord would usually use an agent, in which case the tenant should be 'safe'.

Turing_Machine 3y ago

If you pay a contractor more than $600 over the course of a year, you're required to file a Form 1099 with the IRS and send a copy to the contractor. That's if the contractor has provided you with a Taxpayer Identification Number (Social Security Number if it's an individual). However, if the contractor doesn't give you the number, you, as the person hiring the contractor, are required to withhold 24% of the payment and fork it over to the IRS (the contractor can get it back if there's an overpayment at the end of the year). That seems pretty similar.

tzs 3y ago
Before everyone panics because they did not withhold 24% when they had a new water heater installed in their home or a level 2 charger installed in their garage, it should be noted that those requirements are when a business hires a contractor. When you are an individual and hire a plumber or electrician or handyman or similar to do work on your home it does not apply.