"vinodetox" <vinodetox[at]yahoo.com> wrote:

- quote -

It sounds like it's too late in your case, but lurkers may
learn. The time to ask this question was before you issued
the check. Once you paid her you lost any leverage you had.

The second question, assuming that it's taxable income to
her (I think it is), is whether it's subject to backup
withholding if she won't give you a W-9. I don't know the
answer to that question without looking it up, but I'd find
out before I cut the check.

--
Phil Marti
Clarksburg, MD

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Dick Adams wrote:

- quote -

Don't think we want to do that. If payee refuses to furnish
SSN (Form W-9), then you are required to withhold income tax
-- backup withholding, but I presume it's too late for that
now. Affirmatively telling IRS in filing Form 1099 that she
refused is sufficient evidence to assess the B/U W/H on the
orig poster! I doubt they routinely do that, though. But I
would still just send in 1099 with SSN blank, as though just
an oversight in completing it. There's a small % of 1099s
which have to be "manually perfected" by IRS, and this will
be one of them.

Fred F.

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"vinodetox" <vinodetox[at]yahoo.com
- quote -

First, she is required by law to give you her SSN. If she
will not, you issue her a 1099 and tell the IRS she refused
to give it to you.

Second, it is write-off as a selling expense.

Third, because you will be writing it off as a selling
expense, you will be paying her in pre-tax dollars.

Dick

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I live in San Francisco and am about to sell my duplex. Thanks
to the overzealous rent control laws out here I had to end up
paying my tenant $8000 to leave the unit even though the lease
was up (tenant is a young, able-bodied professional paying
full market rate - it's not like I was asking a 90yr old
senior on fixed income to leave a $400/mo rental).

Two questions:
1) What is the most advantageous way for me to write off
this expense on my taxes?

2) Can I send my former tenant a 1099 for the payoff amount?
She won't give her SSN and I'm afraid I can't locate the
rental application that had all the original info. It
frustrates me to no end to think she can get $8000 of my
post tax dollars and not have to report it or pay taxes
on it!

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