Do I have to pay taxes on rental income that doesn't go to me?

NA

As nominee, you must issue your mother a new 1099-Misc with yourself as issuer. You send a copy with a 1096 to the IRS. On the 1096 you are a "filer." Do this quick. The deadline for giving mom her copy is today! The IRS deadline for their copy is Feb 28th. Get this out of your name/SSN as quick as you can as it tends to generate mail from the IRS.

curtisports2

You need a tax attorney to straighten this out for you. If it's paid in your name, you have to report it as income. Your tax person will have to figure out how you can avoid being taxed.

Casey Y

Wow...you are all screwing this situation up severely...get an accountant... All of that rental income went to you as the owner of the bank account...then you decided to give your mother a gift...that's what happened here from a legal and tax perspective...

Beverly S

Sorry, but the answer is yes.. it should be changed so the rental income goes into the trust if possible..

DR + Mrs Bears face

the situation legally is that you receive the rent and gift it to your mother so, yes, you should pay tax.

StephenWeinstein

It's a little unusual to see this with rental income, but I've read about a similar situation with interest income: If you get a 1099 for money that actually belongs to someone else, you are supposed to fill out a different type of 1099 (I think it's a 1099-NOM) to report whose income it was. I don't remember all the details.

Pascal the Gambler

If it's in your name, you must report it. You can then show the payments made to her and claim the entirety as a deduction for net of zero income.

real estate guy

of course you do. YOU received the 1099 form. The IRS doesnt' know that you didn't receive the money. Talk with a tax atty

R P

Yes, you have to claim the money as income on your tax return since you received the 1099 from the property management company. You should probably hire a CPA so that your return is filed properly.

Slabberdasken

Yes, you have to report it because the 1099-MISC is under your name. Maybe mom could reimburse you for the extra taxes you have to pay on your rental income?

STEPHEN

If the rent is going to you the tax authorities will look to you for the tax.

ReneeGade

If it looks like you make money, you have to pay taxes, unless a smart tax lawyer can get you out of it. If your mother benefits from the money, she might have to pay tax, too. My advice? Get it in your mother's name now.

Landlord365

Yes you do. The checks & account are all in your name so YES the money did technically go to you. The IRS does not care were it goes after you get the check. As it is now you are legally responsible for the money. You should never have set it up this way. The money should be going to the trust not an individual then disbursed to your mom. The agreement between the trust & your mom should be in writing.

Slumlord

If it were me I would report the income as having been received and then report an expense to my mom for the same amount and tell your mother to report this income as well and I'd even give her a copy of the 1099 and get the money out of my name ASAP so you don't have to deal with this to much down the road. The IRS should figure it our from there if they take the time to look.

PETER M

It appears you are the "Executor of the family trust. This explains why you received the 1099-MISC form. As Executor it's your responsibility to pay the taxes for the family trust income. Yes, you report the income on the Schedule E form and you also are required to take depreciation on the property and if you have to pay Windermere a management fee, or pay property taxes on the home, the full amount of the management fee and property taxes paid during the tax year 2018 is a deduction against the income received for the rental income shown on the 1099-MISC. Were there any capital improvements made on the rental property during the year 2018, a portion of the capital improvements may be deducted from the rental income although the capital improvements will be subject to depreciation, and the whole amount of capital improvements isn't to be deducted from the rental income because the IRS states depreciation must be taken for capital improvements. I suggest you see a tax specialist as it appears you don't know enough about the IRS tax code.

p

Let me understand that you are paying taxes on this property, the house is under your name and YOU don't get any of the income from it?? Your mom needs to put the house in HER NAME. And SHE PAY THE TAXES and REPAIRS for the house. Sorry to say that your mom does not seem to be fair to you

thegreatone

It sounds like your family is pulling a scam on you. Take them to court. Because, they're having THEIR income go to YOUR account, and they could hide under your account if tax is not paid, and that will get you in undo trouble. Also, if your name isn't one of the names on the deed, you don't own the home at all. Your family does. And, if your mother is the one who actually is due to collect the rental income, SHE is the one who owes tax, whether it goes to your account or not. Your mother needs to go to a bank that will give her an account, instead of continuing to use your account.

Anonymous

You are supposed to or you will be assessed a huge penalty and if you don't pay it, at some point, they will haul you off to prison. But you can't really, because it was not your income. This represents a problem for you. You should go to your local IRS office and explain it to them. The income still should have been put in your mother's name and she could have signed the checks over to you and then you could have cashed them for her. Your mother committed fraud. You should also go to your local police station and inform them. I hope you can think better that your mother. For some twisted reason, some people think the best way to handle something not straightforward is to do it criminally. That is not the best way.

Judy

Your options are to just pay it, or report your mom to the IRS. I hope she is at lease paying the extra tax it's costing you.