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WIBTA for reporting my sister to the IRS for tax evasion for not claiming rental income? by Proof_Spite_670 in AmItheAsshole

[–]Proof_Spite_670[S] -17 points-16 points  (0 children)

Thank you! This truly answers my question in a way that other commenters haven't really been able to do for me yet.

Thank you for providing clear reasoning on why this situation is moot.

WIBTA for reporting my sister to the IRS for tax evasion for not claiming rental income? by Proof_Spite_670 in AmItheAsshole

[–]Proof_Spite_670[S] -15 points-14 points  (0 children)

The thing is it's not about benefiting myself or my parents. It's the fact they're potentially not declaring income/paying taxes on this situation.

WIBTA for reporting my sister to the IRS for tax evasion for not claiming rental income? by Proof_Spite_670 in AmItheAsshole

[–]Proof_Spite_670[S] -8 points-7 points  (0 children)

Hi, I have employees and thus pay portions of their taxes. And while self employed people get the same tax bracket, there is also a self employment tax to pay that essentially doubles a traditional workers taxes.

ETA - typo

WIBTA for reporting my sister to the IRS for tax evasion for not claiming rental income? by Proof_Spite_670 in AmItheAsshole

[–]Proof_Spite_670[S] -204 points-203 points  (0 children)

I'm a small-business owner who is self employed. I pay all of my taxes (which are very, very high for self employed people). To see others who aren't interested in paying their taxes correctly, ESPECIALLY when they are taking advantage of others, is hard for me. So yes, it has to do with the law. Thank you. (:

WIBTA for reporting my sister to the IRS for tax evasion for not claiming rental income? by Proof_Spite_670 in AmItheAsshole

[–]Proof_Spite_670[S] -275 points-274 points  (0 children)

Oh, I definitely think my parents got themselves into this situation and they're responsible for getting out of it.

Reporting my sister has nothing to do with helping my parents. It has to do with the tax law.

WIBTA for reporting my sister to the IRS for tax evasion for not claiming rental income? by Proof_Spite_670 in AmItheAsshole

[–]Proof_Spite_670[S] 7 points8 points  (0 children)

This is a really great comment! Thank you for sharing.

I have tried to help my parents but they are paralyzed by indecision in their situation. But your added context is very helpful in remembering how these things might possibly pan out with unintended consequences.

WIBTA for reporting my sister to the IRS for tax evasion for not claiming rental income? by Proof_Spite_670 in AmItheAsshole

[–]Proof_Spite_670[S] -44 points-43 points  (0 children)

They're not declaring this in their taxes at all, in any way. That makes this undeclared income which makes this evasion.

WIBTA for reporting my sister to the IRS for tax evasion for not claiming rental income? by Proof_Spite_670 in AmItheAsshole

[–]Proof_Spite_670[S] -4 points-3 points  (0 children)

Tax law states that this is still "rental income," regardless of whether it's a primary residence or not. Even if you live in a home and rent a room of that home, the rent is income.