New Cash App Tax Law
Hi Terry. After my recent divorce (2021), I stayed in my home (which was discharged in BK long ago) and brought in a roommate to help me pay the mortgage (rent). She signed a 1-year lease to stay in my home with me through July 2022 and pays me through Venmo. Am I going to be taxed in this situation? We are roommates! Thank you.
Terry Says
As long as you are roommates and friends, there is no tax obligation. On Paypal you can designate the payment as made to a friend. I don’t think that option is available at Venmo. So when they send her a 1099 next year for making payments, she can consider them a “gift” to her friend (you) and thus not taxable to you!
And getting a roommate was a smart move!!
