This won’t affect me this year, but probably will next year. I am set up to be getting a small amount of income (<$5000) from Missouri based rental and think I might have to submit a Missouri income tax statement. I don’t mind getting the income and really don’t mind paying the taxes; but I really would rather not complicate my income tax forms if there is a good and legal way to do that.
Is there a method I can NOT take the money as income so I don’t have to fill out a new state form? I was thinking the renter could take the amount owed to me and upgrade the property with it? Or maybe something else?
I likely will just take it as cash and muddle through trying to fill out two state forms, but I’m not looking forward to it…complications make the IRS and me nervous.
I was just hoping someone would have a suggestion of a factual and LEGAL way to take the added value without having to fill out a new state form.
I assume costs can offset income for the same business; so likely you can apply any costs to deduct from the income so the business itself does not show a profit. Not sure how mortgage figures into this - whether you could take out a mortgage (or a bigger morgage) on the property and deduct the interest payments from the income. For that detail, consult a real accountant who knows the local laws. Otherwise, what improvements can you make - i.e. upgrade the property, install central air, add a deck, etc. etc. each year.
I’d think you’d still need to file a Schedule C, showing income (rent) vs. deductions (cost of property improvements). I can’t imagine there’s a way that the state wouldn’t want to know what the money trail is, even if you don’t put cash in the bank at the end of the day.