My sister and I inherited a house, which has had tenants in it since before our mom died. For reasons I don’t want to get into, I handle the accounts. I collect the rent and divide it between myself, my sister, and the ‘house account’. The house account pays taxes on the income, property taxes, repairs and maintenance. I’ve made it clear that the house account is for the house.
So my sister calls to tell me the property taxes are due. OK, send me the bill and I’ll pay it. ‘Um… I also want to send you my property taxes so that you can pay them out of the house account too.’ :smack: I tell her that the house account is for the house. ‘I don’t see why it can’t pay for my property taxes and your property taxes too!’ :smack: :smack: I tell her why. Again. She asks how much is in the account and I tell her. She said, ‘What? I thought there was $X in it!’ I reminded her that we had to pay taxes on the rental income last year, and that she freaked out about it then. Remember? I ask her why we bother having the house account at all. Why not take all of the money out and then next April tell the IRS, ‘Oh. Sorry. We spent it. We can’t pay taxes.’ I heard BIL in the background wondering why we have the house if we can’t have all the money out of it.
Then I asked her how much her property taxes are and she tells me. ‘So why don’t you pay it out of your account?’ ‘I don’t want to.’ I told her that I’d just deposited her share of the rent, so I know how much she has in it. She can pay her property taxes.
She was very disappointed and got very quiet. She said she’d send me the rental house tax bill.
If the housing market wasn’t crap now, I’d suggest we sell the house and she could piss her share away anyway she likes. :mad: