DIYbanter - View Single Post - Illegally renting main house and living in another house built on back of the house on same plot...

(Kaushik) wrote in message . com...
I am buying a property in CA. This has total 7500 sq.ft. plot. About
4500 sq.ft. plot is availabe behind main house. I want to construct
another house on the plot, behind main house. Legally I will treat it
as in-laws apartments (I will take legal permit for the construction).
Once it is build I will move it the new house and rent the main house.
Rent received is illegal and not disclosed IRS. So I am not paying any
tax on rental income.

1. Do you think that this plan has hay loop holes, problems?
2. Has anyone done this? Do many people do this?
3. Any tips on negotiating mortgage for buying and construction?
4. What would you do if you have 4500 sq.ft of plot available behind
your main house?

I'm just a lurker, but do you think it wise to admit in a public forum
that you know it's illegal? Wouldn't take an IRS agent ten minutes to
find this thread....

John W.