I can safely say that I've never known anyone who has had an illegal apartment in their home. I only know two people who have had an apartment in their home, and I know that they got permits for them. I know plenty of people who have rented out rooms in their home, but that is not illegal, as it is not considered multi-family, and requires no permits.
it's the same thing. Income from rental and depending on the percentage of square feet in the home devoted exclusively to the rental, that's how much of a percentage of the household expenses that can be claimed against it. In my case, it wasn't that much, since the only part exclusive to my roomie was his bedroom, which was small.
You can just claim it under other income (there's a line somewhere that falls along those lines). The IRS almost never questions you if you claim MORE income than you have the paperwork to show, but you can show things like the deposit slips and a copy of any ads that ran in local papers as supporting documentation. I wouldn't send them in, unless your tax advisor told you to, but have them ready if the IRS asks for them.
Where it gets really problematic is if you have a fairly steady income from ebay or garage sales that you've only claimed annually. Beyond a certain point (and I'm not sure where it is), you'd likely sustain penalties for under claiming your income (and underpaying withholding taxes). If a person is doing ebay as a business, they should probably be filing and paying an estimated tax quarterly.
Pages
Kitty
~~~~~~~~~
Kitty
"BTW, I hate Lifetime. Their movies will suck you in and all of a sudden you've watched 3 in a row, used every tissue in t
Did you check the post right above yours?
lois_15354
You can just claim it under other income (there's a line somewhere that falls along those lines). The IRS almost never questions you if you claim MORE income than you have the paperwork to show, but you can show things like the deposit slips and a copy of any ads that ran in local papers as supporting documentation. I wouldn't send them in, unless your tax advisor told you to, but have them ready if the IRS asks for them.
Where it gets really problematic is if you have a fairly steady income from ebay or garage sales that you've only claimed annually. Beyond a certain point (and I'm not sure where it is), you'd likely sustain penalties for under claiming your income (and underpaying withholding taxes). If a person is doing ebay as a business, they should probably be filing and paying an estimated tax quarterly.
Kitty
~~~~~~~~~
Kitty
"BTW, I hate Lifetime. Their movies will suck you in and all of a sudden you've watched 3 in a row, used every tissue in t
So you got a check from this person every month so you could claim it?
Have you reported all your winnings?
Pages