Expert: David Conboy - 1/14/2012

Question
A tenant of my residential rental property has just requested a W-9 from me.  I file this rental income on schedule E each year.  A tenant has never asked this from me before. Do I need to supply this?  I am very uncomfortable giving my tenants my social security number.

What do I do?

Thanks, Gabe

Answer
Dear Gabe,

Oddly enough, if a person, who has paid you monies for anything, requests a W-9 from you must give it to them.  However, I think like you think and I would be incredibly hesitant if not totally non-compliant with the request because the purpose of the form is to reveal your social security number.  Personally, I'd ignore the request.  Do not respond at all - ever.  Just ignore the request.  My guess is (unless they are trying to steal your identity) that they want the form to deduct certain rental expenses (just like a homeowner can deduct certain expenses).  My experience with this exact issue is that a renter can deduct a percentage of their rental payments for property and school taxes.  The thought goes... the landlord is paying the taxes and therefore builds those taxes into the tenants monthly payments and, therefore, the tenant is allowed to deduct a percentage of their rent on their income tax forms.  That said, there is no need for them to get a W-9 from you.  It is up to them (the renter) to make the deduction and declaration on their tax return.  If there is a dispute from the IRS then, and only then, would I reveal my social security number and I would only reveal it to the IRS (who already has it anyway).  My advice... just ignore the request.  Do NOT tell the requester that you will not give them a W-9... just ignore the request.  Say nothing and do nothing.  Trust me, if the IRS wants proof that this person paid you rent, the IRS will come knock on your door.  Do not give your social security number to this person.

I hope this information was helpful.

David