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

wrote:
On 14 Oct 2004 12:06:22 -0700, in misc.consumers.house

(John W.) wrote:

(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.

you sound paranoid

Nope. Just practical. You don't tell the world you're planning to
commit a crime. Lots of ways to ask the OP's question without admitting
to a crime.

John W.