Payment to husband alone, for a rental TBE property

[belmar77]

Yes, we need to: we do some part-time jobs and our joint income just exceeds the limit of no tax return limit.

 

[LdiJ]

Sincerely appreciate your feedback. I overlooked and missed the fact that TBE is a Florida creature not Federal, as you correctly highlighted. I am sorry.

My husband signed “repair agreement” with tenant thereby the tenant did not pay rent ($300) for February 2021, instead the tenant paid (that $300) directly to the repair person: and that $300 never touched my husband’s (or my) hands.

So, if I understand your feedback correctly, neither me nor my husband needs to show that $300 anywhere in our joint tax returns for 2021 (because, according to your statement/feedback, that $300 is not income to me and not income to my husband): is it correct?

Finally, whether your statement/feedback "If your husband allowed the tenant NOT to pay rent for any reason (repair or not), then that money is not income to the two of you" will change on how the tenant is claiming that $300 in his 2021 tax return (i.e., in his tax return, whether the tenant show that $300 as it is paid to my husband (or paid as rent) or paid directly to the repair person, etc.)?

I disagree with Ron. I think that you should show it as rental income on Schedule E and then expense it out as repairs (also on Schedule E) making it a wash. However, the results are the same either way. You still won't be paying tax on it with either method.

 

[STEPHAN]

You still won't be paying tax on it with either method.

Sales Tax?

 

[doucar]

Income tax.

 

[doucar]

Unless they are audited, there is no way the IRS can connect their rental deduction to your tax return and unless they are specifically looking at that in an audit, it would no way involve you.

 

[davew9128]

Why would the tenant show his rent payments on his federal tax return?

Home office deduction. Business tenant.

 

[davew9128]

Somewhere, there is a nit needing to be picked.