I pay my manager cash from the cash rent I receive but at the end of the year I give him a 1099. Is there any problem ? Two tenants don't want to pay by check but cash
You can pay him in half dollars if you want as long as you issue the 1099. The method of payment isn't important, the reporting is. Also be sure you report the cash you receive as income on your taxes.
everything is been reported. No problem there. And I have all my records for 10 years.
thanks for the imput
No problems, just give receipts to the tenants, to be fair and avoid confusion. I used an old fashioned receipt book that had a carbon sheet in it, so I'd be making a copy for myself at the same time. I did eventually get all tenants switched over to money orders or checks. But, cash is legal tender.
And with the 1099 you're covered with your manager, too. If you aren't already doing so, get a signed receipt from the manager for cash.
As the other say, cash is fine if properly reported. I don't like it because its harder to track, but many people still use ;)
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.