Say you have a million dollars. So you invest in in condos. You buy 3 condos in New York City. They are decent, and they have 2-4 bedrooms. You lease them out for $3500 per month each. You tell the tenants to send you a check every month, or every 3 months or whatever the agreement is.
You got yourself a nice income of $10,500 per month. That's about 120k a year.
I mean, how is the IRS going to find out about this? If you don't report it…
'Cause let's say you OWN the condos. You don't pay any mortgage on them.
So… How in the world will the IRS find out? For all they know, the condos could just be standing there unoccupied, and you might be receiving your checks as "gifts" from friends.
Read more: Can the IRS really find out if you are not reporting rental income? (If you lease out condos you own)?
