Posted by ChicagoMike on October 25, 2005 at 16:35:32:
Anytime something starts with “out under the table” you have a 90%+change it’s not legal. the first word coming to mind is tax evation. he does not pay taxes on the money and you don’t get credit for it either not a good move on your part. you can push him for whatever you want but don’t push to hard or it becomes “blackmail” since you have info on him that would get him in alot of trouble. So. in short bad idea to bad idea on this one.
Is this legal? - Posted by Brian_wa
Posted by Brian_wa on October 25, 2005 at 13:58:20:
I recently paid an investor 25k assignment fee for a house he assigned to me. This was under the table so only he and I know of the assignment fee. In April, he would have to pay around 28% plus 15% or so for self-employment tax on what he made. I wonder if it’s ok if he could simply refund 25% or so of what he got from me and keeps the rest without reporting it to the IRS as I won’t be reporting to the IRS as well… Of course I’d have to pay more taxes later on when I sell the house but I plan to keep it for at least 1 year so the tax consequences would be much less for me. Do you think this would be ok?
Brian
How could it possibly be legal? - Posted by Will
Posted by Will on October 25, 2005 at 17:01:58:
If the question is whether or not you’ll get caught…you probably will not.
If the question is one of legality, that’s a different question entirely.
As for the last question–whether or not it’s “OK”–only y’all can decide that one.