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I am the owner of a property. I am currently renting out that property to my close relative. I trust this family member to use my money to pay a contractor to make small fixes to the property. For this property I'd like to have a dedicated checking account into which goes all income and of out which go all expenses for just this property for tax accounting purposes. It would make the accounting more easy for me to track if I could make the account a joint account with my relative.

Are there any tax implications to having my renter officially have access to this join account for ordering a contractor to make small fixes?

  • Would this trusted family member use the account for anything except paying this contractor? Would the TFM keep receipts and pass them on to you? – RonJohn Jul 21 at 4:44
  • I could require them to pay everything in checks with memos and then my bank statement would show check images (IIRC it's standard with my bank to show all check images). If money was taken from from the bank and didn't match this requirement OR the memo didn't match a real fix I later inspect, then it would be a red flag and I'd terminate the relationship. – Mark Fuego Jul 21 at 4:48
  • And if your TFM says, "don't you trust me?" then you say "it's for tax purposes in case the IRS audits me." – RonJohn Jul 21 at 5:22

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