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cash for keys and taxes

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redracer024

Junior Member
What is the name of your state (only U.S. law)? tennessee

This is complicated and ill do my best to explain as best i can. Im wondering if my cash for keys is taxable which ive heard it is but how should i go about this?

My moms house was in foreclosure for years, they finally escalated their attempts and the dates were coming up fast so I took a trip to Tennessee from Minnesota where the house was December of 2011 and got a rental duplex i signed for Dec 5 2011, i got her down to the place in January where she started to work and i went back to Minnesota to take care of the house and our possessions.

I didnt know i would be offered this cash for keys until i got home one day to the realtor and her lock changer just in time where i was offered 6400 to move out and clean which i accepted. I had to be out i think it was may 5 or june 5, 2012, i cant remember off the bat. I got the check in my name, not my moms who owned the place as she was out of state.

Anyways, i never put in a change of address form with the post office as i just didnt care about my old mail and wanted to start over and put that behind me/us. So now i never received the tax form for the cash for keys, is it still taxable as it was never received?

Also, i intended on moving back up to Mn for work but got in some unrelated legal trouble in TN which has been drawn on since last June so im still in TN and never changed my license over hoping it would help my case so i still have my license from my old address in MN, do i need to file 2 tax forms for mn and tn for the 6400.00?

Sorry this was so long any help would be appreciated.
 


tranquility

Senior Member
ok but do i need to pay taxes for both states, MN and TN? What should i do since i never got a 1099 for it?

The income will be sourced to MN and you file as a resident of TN according to TN law (If that's what your were, It's a little hard to know from how you've written.) and as a non-resident of MN. While there are sometimes odd apportionment issues where a person has to pay more tax in such situations, I think in the states you're talking about they use tax credits so you won't pay more tax than you otherwise would have.
 

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