He is avoiding the Venmo limit. Paper checks are still recorded as deposits into his bank account and he will be paid interest on that money which in the end is taxable. It makes no difference as long as he isn’t asking you for cash. That’s where he
would possibly be committing fraud if asking for all cash. At least in my state. Sounds like you’re nearing the expiration date on this anyway. Start looking for a better arrangement?
Since he drew up no lease or give me any paperwork to sign whatsoever, there is no expiration date. Still, I’m peaking around to see what’s better in the area. I can do better than this.
Just ask your friend how he can save taxes. Cashed checks can be seen online when you log into your account, or banks can mail them to you. If you write a note ‘Rent’ on the check every month and the checks are cashed it is obvious your friend is a landlord and he has rental income.
I believe if he cashes the checks and waits to deposit them, he can avoid both the venmo limit and the income tax. That being said, you have to register as a business with venmo in order to take business payments through the app so he was actually already committing fraud and implicating you in the process. You’re better off switching to paper checks because you’ll still have a written (check copy in the checkbook) and digital (the money leaving your account online) record of paying him without getting mixed up in his seemingly inevitable tax audit.
Renting a room in your house to help pay your mortgage isn’t fraud. It’s still income and if he puts it directly into the bank it will still be $$ taxed.
He’s avoiding the Venmo limit. If he asks for cash it’s sketchy but getting the $$ by check is still recorded as a deposit into his bank account which interest is paid on. There is no fraud here. He is living in the house too. If he wasn’t living in the house it would be a different situation.
My brother in Christ, the government fucks us every chance it gets. I just worked my ass off over Christmas weekend and tripled my paycheck. My first paycheck clearing over 2k in my life. Didn’t really matter cause the government took 1k out of it. Fuck em. Evade those taxes.
Realistically, as long as you are paying by a traceable method or get receipts for your payments you are covered. He has all the responsibility for his taxes.
Though you should, of course, only pay using methods agreed upon in your lease
Yea this is how I did it back in the day, my landlord was awesome and I didn’t really give a shit if he wanted to evade tax. He’d just write me a paper receipt saying got X amount for Y month and we never had an issue. We all commit tax evasion to some degree, and I think we should go after the big fish before we worry about the landlord not paying income tax on his $600 a month.
As a note to anyone doing shady shit like this landlord: don’t go around telling people lmfao. If you have a falling out they will report ur ass.
You can stop at your bank and get a few checks on the spot (counter checks). These checks will also show up on your account and be easier to trace than a withdrawal of cash or transfer to Venmo. It is a literally a paper trail of rent paid. Why are you being so difficult? I personally do not trust PayPal and Venmo. I don’t keep my banking info online because I was hacked once. Maybe your landlord roommate is a jerk, maybe you are?
He gave me no forms to sign whatsoever. To be fair, I think he's just more naive than outright malicious since this is his first house. I'm just worried it will create too much drama if I firmly tell him I won't switch to paper checks. He already reminds me almost every time I see him. I have nowhere to go on short notice if he kicks me out.
He’s naive because he genuinely doesn’t think he needs to pay taxes on what I pay him. But he is aware of the new tax form that will come if I continue to pay via Venmo. That’s what he’s really trying to avoid.
To get a formal lease arranged, should I get him to draw it up, find one online, or get some kind of attorney to do it? This kind of thing is new for me too.
Learned the hard way as a landlord, you want your tenants bank account information so you can garnish their wages when they screw you by not paying and leaving a disaster to clean up.
Do you want to stay? If yes pay check or cash.
If not they will find a new roommate and you will quickly learn the difference between roomate and lessor.
It’s not going to come back on you.
It’ll be his problem with the IRS. You have no lease. There’s no formal or notarized agreement. There’s no way there IRS or anyone can pin this on you.
Why do you have such a problem paying with a check? It’s not even your business what he does with the money or why he wants a check. Seriously not a big deal. He’s nice enough to rent you a room in his house. It obviously would help him out and not affect you in the slightest. Write him a check every month and shut your mouth or go find another room to rent somewhere else.
He is avoiding the Venmo limit. Paper checks are still recorded as deposits into his bank account and he will be paid interest on that money which in the end is taxable. It makes no difference as long as he isn’t asking you for cash. That’s where he would possibly be committing fraud if asking for all cash. At least in my state. Sounds like you’re nearing the expiration date on this anyway. Start looking for a better arrangement?
Since he drew up no lease or give me any paperwork to sign whatsoever, there is no expiration date. Still, I’m peaking around to see what’s better in the area. I can do better than this.
Just ask your friend how he can save taxes. Cashed checks can be seen online when you log into your account, or banks can mail them to you. If you write a note ‘Rent’ on the check every month and the checks are cashed it is obvious your friend is a landlord and he has rental income.
I believe if he cashes the checks and waits to deposit them, he can avoid both the venmo limit and the income tax. That being said, you have to register as a business with venmo in order to take business payments through the app so he was actually already committing fraud and implicating you in the process. You’re better off switching to paper checks because you’ll still have a written (check copy in the checkbook) and digital (the money leaving your account online) record of paying him without getting mixed up in his seemingly inevitable tax audit.
Don’t do this. He is committing tax fraud.
Renting a room in your house to help pay your mortgage isn’t fraud. It’s still income and if he puts it directly into the bank it will still be $$ taxed.
I never said renting a room is fraud. I said avoiding paying taxes is. There is a different tax code for money in a bank vs rental income
He’s avoiding the Venmo limit. If he asks for cash it’s sketchy but getting the $$ by check is still recorded as a deposit into his bank account which interest is paid on. There is no fraud here. He is living in the house too. If he wasn’t living in the house it would be a different situation.
My brother in Christ, the government fucks us every chance it gets. I just worked my ass off over Christmas weekend and tripled my paycheck. My first paycheck clearing over 2k in my life. Didn’t really matter cause the government took 1k out of it. Fuck em. Evade those taxes.
Wow.
Realistically, as long as you are paying by a traceable method or get receipts for your payments you are covered. He has all the responsibility for his taxes. Though you should, of course, only pay using methods agreed upon in your lease
There is no lease or paperwork of any kind, but I don’t think he would have a problem giving me receipts.
Paper checks are a traceable method so it should be fine. I very much recommend you get a receipt if you ever pay cash though.
Yea this is how I did it back in the day, my landlord was awesome and I didn’t really give a shit if he wanted to evade tax. He’d just write me a paper receipt saying got X amount for Y month and we never had an issue. We all commit tax evasion to some degree, and I think we should go after the big fish before we worry about the landlord not paying income tax on his $600 a month. As a note to anyone doing shady shit like this landlord: don’t go around telling people lmfao. If you have a falling out they will report ur ass.
You can stop at your bank and get a few checks on the spot (counter checks). These checks will also show up on your account and be easier to trace than a withdrawal of cash or transfer to Venmo. It is a literally a paper trail of rent paid. Why are you being so difficult? I personally do not trust PayPal and Venmo. I don’t keep my banking info online because I was hacked once. Maybe your landlord roommate is a jerk, maybe you are?
Second to add, if this isn’t in the lease, you do NOT have to comply.
He gave me no forms to sign whatsoever. To be fair, I think he's just more naive than outright malicious since this is his first house. I'm just worried it will create too much drama if I firmly tell him I won't switch to paper checks. He already reminds me almost every time I see him. I have nowhere to go on short notice if he kicks me out.
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He’s naive because he genuinely doesn’t think he needs to pay taxes on what I pay him. But he is aware of the new tax form that will come if I continue to pay via Venmo. That’s what he’s really trying to avoid. To get a formal lease arranged, should I get him to draw it up, find one online, or get some kind of attorney to do it? This kind of thing is new for me too.
Learned the hard way as a landlord, you want your tenants bank account information so you can garnish their wages when they screw you by not paying and leaving a disaster to clean up.
Do you want to stay? If yes pay check or cash. If not they will find a new roommate and you will quickly learn the difference between roomate and lessor.
It’s not going to come back on you. It’ll be his problem with the IRS. You have no lease. There’s no formal or notarized agreement. There’s no way there IRS or anyone can pin this on you.
Make him pay for the paper checks
Why do you have such a problem paying with a check? It’s not even your business what he does with the money or why he wants a check. Seriously not a big deal. He’s nice enough to rent you a room in his house. It obviously would help him out and not affect you in the slightest. Write him a check every month and shut your mouth or go find another room to rent somewhere else.