Author Topic: EIN/SSN Tax question  (Read 743 times)

Bobberth

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EIN/SSN Tax question
« on: March 03, 2017, 11:43:02 AM »
All of my properties are owned in my name. In 2015 I applied for a EIN so I could use that if I needed to 1099 people. I have never used it for anything. Yesterday I had a tenant ask me to fill out a form stating that I received $X of rent for 2016 so he can write it off on his taxes. On the form, it asked for my Social Security number. Not wanting to give out my SSN, I'm going to use my EIN. My concern is, that while I fully plan on reporting the rent as income, in the IRS database a red flag is going to go up since the expense side of the rent linked to the EIN is going to be reported but the income is going to be reported under my SSN on my personal tax return. I do my taxes by hand. Is there a form or some way to show the IRS that the income from that EIN is reported under my SSN? I can see several letters and months going back and forth with the IRS to figure this out even though the numbers on the tax return are 100% correct.

SeattleCPA

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Re: EIN/SSN Tax question
« Reply #1 on: March 03, 2017, 03:46:58 PM »
I would use your EIN... The 1099 you get from your tenant should identify the amount as rent. IRS can probably see that in your return. If not, you might need to explain. But I think you'll be fine.

slowsynapse

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Re: EIN/SSN Tax question
« Reply #2 on: March 03, 2017, 05:50:47 PM »
I would use your EIN... The 1099 you get from your tenant should identify the amount as rent. IRS can probably see that in your return. If not, you might need to explain. But I think you'll be fine.

I agree with ^.  You can use the EIN for the form W9 they are likely asking you to fill out.  The IRS should be able to see the rents in your income on your (most likely) schedule E of your tax return.  Also, you would want to make sure the tenant identified the 1099 income as box 1-rents, not box 7- non employee compensation.