I have a tenant in a residential rental property who wants to pay rent through their company. They are asking for my SSN because they say their CPA needs it. Should this raise any red flags?
I disagree with the other respondents.
If your tenant is an individual, renting in their individual capacity, there is no reason they need your SSN. They will not be sending a 1099 to you.
If your tenant is a business, then your property is not a residential property. It is at least a "corporate housing", and you would have noticed that the contract was signed by a company representative in the capacity of being a company representative, not an individual person. In that case, that representative would also ask you to fill a form W9, on which your tax ID should be reported.
I would suggest let the tenant figure out their tax avoidance issues without you being involved.
The company that's apparently going to pay this rent wants to treat it as a business expense. They are asking for your SSN because they expect to issue a 1099-MISC. (They probably gave you a Form W-9? It's not mandatory but it's common to request a taxpayer ID on this form.)
There are a couple of issues at play here:
Maybe you should consider setting up a Taxpayer Identification Number (TIN) for your business dealings as a landlord and consider providing that instead of your SSN for this type of thing. I am assuming (if this is legitimate) they want it so they can send you a 1099 as they might be obligated to do if they are claiming the rent as a business expense.
Also, I'd suggest having the tenant tell their employer to contact you directly. There is no need for the tenant in this situation to also get your SSN/TIN.
protected by Community♦ Mar 5 at 2:11
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