Silk Road forums

Discussion => Security => Topic started by: Ticket on August 24, 2013, 04:17 pm

Title: Paying rent in cash?
Post by: Ticket on August 24, 2013, 04:17 pm
I pay rent via money order (cash, basically) from money I make here on the Road. Any landlords or real estate people in the know: does my landlord have to report to any government agency such as the IRS who is paying rent via cash? My landlord manages a few apartments and is part of a small property management company (so it's not a one man, one property operation).

Thanks for any intelligence on the matter.
Title: Re: Paying rent in cash?
Post by: Tessellated on August 24, 2013, 04:36 pm
Good question.
Title: Re: Paying rent in cash?
Post by: blueveil on August 24, 2013, 04:40 pm
Landlords don't give two shits as long as they are paid and don't smell drugs.
Title: Re: Paying rent in cash?
Post by: Meerkovo on August 24, 2013, 04:56 pm
Landlords don't give two shits as long as they are paid and don't smell drugs.

   This is true for the majority of landlords, but for the paranoid ones or big dogs it's something to think about. If you meet the landlord through a craigslist site or such, then there is a formal agreement between you and him and or none at all. He won't have to file much paperwork and most of the time landlords don't feel they should pay any taxes on rent income, so more times then not, by doing it this way, you ARE good. And if you ask me, this is how most people cautious people should it, just like the good ol' days.

I pay rent via money order (cash, basically) from money I make here on the Road. Any landlords or real estate people in the know: does my landlord have to report to any government agency such as the IRS who is paying rent via cash? My landlord manages a few apartments and is part of a small property management company (so it's not a one man, one property operation).

Thanks for any intelligence on the matter.



  Ticket, every country, every city, every agency is different, this is where your good judgments comes into play. If for example your in a huge metropolitan area, more times then not, you should be alright if you pay in cash. Now landlords who makes a business out of renting multiple properties are probably not the best ones as they will not risk getting fined and other prosecuted to save on paying taxes, there many will be declaring how much rent they are receiving and possibly to who they are renting it out to.  I would personally think IRS, or any other Income Revenue collections equivalent will not bother with these things unless your renting a bachelor pad in downtown. After 9/11 a lot of state agencies have become better at cooperating with one another, therefore when it comes to paper trail, if all are not heading the same direction, then...

   I am not trying to instill fear or anything pal, I am just giving a general overview of how things work and have worked in my own experience, so now it's up to every man to make his own choices, we always live with the..... what if?


Meerkovo
Title: Re: Paying rent in cash?
Post by: Cannaisseur on August 24, 2013, 05:04 pm
Ive rented quite a few places in the US.

Some landlords prefer money orders actually over a personal check.
In fact if you are late on a payment usually they will only accept a money order.
They are basically certified checks that will never bounce.

There is no need for you to worry.
Title: Re: Paying rent in cash?
Post by: Kiwikiikii on August 24, 2013, 07:28 pm
If your rent is over $10k per year and you pay cash (not money orders/checks/bullion) then your landlord must report you.

Quote
FAQs Regarding Reporting Cash Payments of Over $10,000 (Form 8300)

    Filing Requirements
    Written Statement to Customer
    Reportable Transactions

Filing Requirements:

    Who must file Form 8300?
    Any persons who receive more than $10,000 in one transaction or a series of related transactions, while conducting their trade or business, must file a Form 8300.
    What payments must be reported?
    A business must file Form 8300 to report cash paid to it if the cash payment is:
        Over $10,000,
        Received as:
            One lump sum of over $10,000,
            Two or more related payments that total in excess of $10,000, or
            Payments received as part of a single transaction (or two or more related transactions) that cause the total cash received within a 12-month period to total more than $10,000.
        Received in the course of trade or business,
        Received from the same payer (or agent), and
        Received in a single transaction or in two or more related transactions.
    What is the definition of a transaction?
    A transaction is the underlying event resulting in the transfer of cash. Examples include:
        Sale of goods, services or real or intangible property
        Rental of goods or real or personal property
        Cash exchanged for other cash
        Establishment, maintenance of or contribution to a trust or escrow account
        A loan repayment
        Conversion of cash to a negotiable instrument such as a check or a bond
    What is a related transaction?
    There are two types of related transactions:
        Transactions between a buyer, or agent of the buyer, and a seller that occur within a 24-hour period are related transactions.
        In addition, transactions more than 24 hours apart are related if the recipient of the cash knows, or has reason to know, that each transaction is one of a series of connected transactions.
    Does the 24-hour period mean one day such as all day Tuesday or does it mean literally 24 hours such as from 11 am on Tuesday to 11 am on Wednesday?
    A 24-hour period is 24 hours, not necessarily a calendar day or banking day.
    What does “cash” mean for the purposes of Form 8300?
    For purposes of Form 8300:
        Cash is money. It is currency and coins of the United States and any other country.
        Cash is also certain monetary instruments - a cashier’s check, bank draft, traveler’s check, or money order - if it has a face amount of $10,000 or less and the business receives it in:
            A “designated reporting transaction” as defined in Treas. Reg. section 1.6050I-1(c)(iii) (generally, a retail sale of a consumer durable, a collectible, a travel or entertainment activity) or
            Any transaction in which the recipient knows the payer is trying to avoid the reporting of the transaction on Form 8300.
    What is a designated reporting transaction?
    Generally, a designated reporting transaction is the retail sale of any of the following:
        A consumer durable, such as an automobile or boat. Property is generally a consumer durable if it is tangible personal property (not real or intangible property) that:
            Is generally suited for personal use,
            Is expected to last at least one year under ordinary use, and
            Has a sale price of more than $10,000.
        A collectible (such as a work of art, rug, antique, metal, gem, stamp, or coin)
        An item of travel and entertainment (if the total sales price of all items for the same trip or entertainment event is more than $10,000).
    If an item (an automobile, for example) sells for $9,950 but the buyer pays $10,650 (sales price plus state and local taxes). Would this be considered a designated reporting transaction (retail sale of a consumer durable) requiring the definition of cash to be expanded to include monetary instruments?
    No. In determining a designated reporting transaction, a consumer durable is defined as tangible personal property that is generally suited for personal use, is expected to last at least one year under ordinary use, and has a sale price of more than $10,000 (exclusive of sales tax). If the sales price is less than $10,000, then the tangible personal property would not be a consumer durable regardless of any taxes.
    Does a wholesaler report transactions paid in US (or foreign) coins and currency only?
    Yes, if the wholesaler receives payment in the form of coins or currency. A wholesaler would rarely have a designated reporting transaction and therefore, need not report transactions paid with cashier’s checks, bank drafts, traveler’s checks or money orders.
Title: Re: Paying rent in cash?
Post by: SpaceAce on August 24, 2013, 09:03 pm
If they think you are suspicious and are anti drug nazi's they might not won't you to pay in cash. I had a landord say they only accept checks once. Told the bitch to fuck her self and moved. Have a reason for paying in cash and you should be good.
Title: Re: Paying rent in cash?
Post by: Euphoric on August 24, 2013, 10:45 pm
I would imagine that if you pay in cash or money order instead of a check, and there is no bill of sale that he or she isn't even reporting to the IRS that he's renting the property. Landlords have to pay additional taxes when they rent a property, so a lot of landlords never report that they are renting their property out, that it's just an extra property that they own and stay at occasionally....unless they have more than 5 rental properties.
Title: Re: Paying rent in cash?
Post by: Ticket on August 25, 2013, 04:38 pm
Thanks all for the input. Eases my mind a bit, but if anyone else has any intelligence, please speak up.

I don't think my landlord is dodging taxes - as I said, it's an albeit small but reputable property management company, so I'm pretty sure they're reporting all income from renting. That said, as long as they're not specifically reporting me as paying with a money order (which is what the consensus seems to be) I'm comfortable.
Title: Re: Paying rent in cash?
Post by: ~o~WaterWalker~o~ on August 25, 2013, 10:52 pm
Thanks all for the input. Eases my mind a bit, but if anyone else has any intelligence, please speak up.

I don't think my landlord is dodging taxes - as I said, it's an albeit small but reputable property management company, so I'm pretty sure they're reporting all income from renting. That said, as long as they're not specifically reporting me as paying with a money order (which is what the consensus seems to be) I'm comfortable.

just say you hate banks and go on a ron paul end the fed rant and they'll probably just leave you alone