Posted: 1/16/2008 6:04:21 AM EDT
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A farmer rents a few acres from me, he's a partner of the guy I bought the land from. I'm not ready to develop it yet, so a small annual payment is better than having to cut the grass. Call it four acres, at a hundred bucks per acre per year. The guy I bought the land from only paid me one year out of seven, then died suddenly. Rather than tie the widow up in court, I basically wrote those payments off and signed a new lease arrangement with the surviving partner in 2004. There was some understandable confusion, such that as of November 2007, he owed me two years worth of rent, 2006 and 2007. Because the delay was on his end, he decided to go ahead and pay 2008 in advance. Yesterday I received a check for 2007 and 2008, so marked. Today I receive a check for 2006, also marked as such, and a phone call. The farmer's wife, who acts as his accountant sort of, wants my Social Security number to work up a 1099 form, in her words, "so they can do tazes for 2007". I understand they need to write off legitimate business expenses, which land rental for farming is. I don't understand why they need my Social Security number. That's not on the lease, I do not work for them, a 1099 seems inappropriate, they didn't ask for my SS number when they wrote me two checks earlier, in 2004, or last week, for 07 and 08, just now today they ask, when they pay me for 2006. I also want to make sure I don't get stuck paying income tax on three years rent all at once, just because they were late on their payments. Finally, since I didn't see or cash a check until well into 2008, if I do have to pay the higher income tax because they were late with rent, it should fall in 2008, not 2007. I have the checks, I don't have to provide them with anything, but if I don't, the check for 2009 will get hung up, and I'll have to go chase this guy around for it, whereas right now, I'm "in his system" and the check will come automatically. He's farming about 3000 acres, I'm just a tiny piece of that, and I really don't want to have to mess with with this busy guy just to collect $400, a year from now. What about it ARFCOM? 1. Should I give them my SS number? If I do, they will have my name, address and SS number, but not my DOB, mother's maiden name, or bank account numbers. 2. If I decline to provide them my SS number, what reason do I give, and how then do they deduct this legitimate business expense? Thanks for any help you can give. |
They have, for a receipt, their cancelled checks, or they will after I cash them. That's what I was looking for, thanks. No need for my Social Security number when they have cancelled checks for tax purposes, just like any other business expense. The 1099 doesn't sound right, and I intend to tell them to use the cancelled checks, not my SS number for tax purposes when I call them. Something has my BS meter pegged here. |