Rental Income (Spouse) - Married, Filing Joint Tax Return

Previous | Next
 rated by 0 users
Latest post 08-11-2011 12:16 PM by Gordon Reiselt. 9 replies.
  • 08-09-2011 11:47 PM

    Rental Income (Spouse) - Married, Filing Joint Tax Return

    Hello,

    I'm brand new to this forum and have a question in regards to how OWCP views rental income of a spouse.

    And is it to be reported to OWCP?

    OWCP Claimant - no work, no participation in the rental income business, maintenance or operation of the spouse's business.

    All rental registrations such as Sales and Use tax reporting and rental licenses are in Spouse's name only.

    Spouse of Claimaint - performs all maintenance and business operations, rent is deposited into sole/single bank account (OWCP Claimant is not a joint owner of the bank account)

    Rental property is jointly owned (deed)

    Question: How does OWCP look at the rental income of the Claimant's Spouse's business if the Claimant and Spouse jointly own the rental property (deed) and file joint tax returns?

    Thank you,

    June

  • 08-10-2011 1:47 AM In reply to

    Re: Rental Income (Spouse) - Married, Filing Joint Tax Return

    JUNIPER STONE:
    How does OWCP look at the rental income of the Claimant's Spouse's business if the Claimant and Spouse jointly own the rental property (deed) and file joint tax returns?

    My opinion for the two cents it's worth is that, unless you are performing any type of work at or involving the property, it shouldn't need to be reported or have any bearing.

    Here's what I found:

    • "OWCP periodically requires each employee who is receiving compensation benefits to complete an affidavit as to any work, or activity indicating an ability to work, which the employee has performed for the prior 15 months."

    Quoted from:

    http://cfr.vlex.com/vid/528-owcp-fails-activity-indicating-ability-19654547

    I suggest you contact your OWCP claim rep to verify that.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 08-10-2011 10:43 AM In reply to

    Re: Rental Income (Spouse) - Married, Filing Joint Tax Return

    Every year OWCP sends out its 1032 to its beneficiaries.

    There are questions on the 1032 having to do with self employment that covers the preceding 15 months. Don't worry about how OWCP will look at the fact that you do nothing and your spouse does everything on rental property that you both own.

    If there is a question in one's mind about whether or not to disclose a fact on the 1032, that fact should be disclosed. OWCP will make the call, but you need to give them all of the facts. If they determine that income from the property is attritibutal to you because of your ownership rights in the property, so be it. They may dock your compensation or they may determine that it should not be docked.

    But if you don't disclose the facts of this situation because you are counting on OWCP not finding this out, the price you may pay will be greatly outweighed by your decision not to disclose. Failure to disclose income can be considered perjury that may result in imprisonment and forfieture of compensation benefits. Do you really want to risk this? Can anyone afford this?

    Just explain the facts to OWCP as you have explained them here. Use extra paper if you cannot fit everything on the form. Be sure to put your claim number on an extra paper you file. Keep copies of what you send and most of all, be complete and honest. Remember, when you sign you name at the end of the 1032, you are answering the questions on the 1032 under the penalty of perjury. Do not fool with this.

  • 08-10-2011 10:54 AM In reply to

    Re: Rental Income (Spouse) - Married, Filing Joint Tax Retur...

    WOW - you have a lot of posts!

    Thanks for the prompt reply AJ. I've done some research, including the link you provided.

    It seems that rental income is allowed and will not affect compensation. The key is NOT to be involved in ANY way (strictly passive).

    However, if there's someone that deals primarily with Federal WC / OWCP regulations and OWCP claimants, I'm interested in hearing from you as well.

    Thanks,

    June

     

  • 08-10-2011 1:18 PM In reply to

    Re: Rental Income (Spouse) - Married, Filing Joint Tax Retur...

    I believe you just got a response from a lawyer who specializes in your issue; perhaps you didn't see it as your posts may have crossed while you were writing yours out.

  • 08-10-2011 1:21 PM In reply to

    Re: Rental Income (Spouse) - Married, Filing Joint Tax Retur...

    Thank you for your post, Gordon. Are you an OWCP "specialized" Attorney?

    If not, are there any OWCP "specialized" Attorneys or Non-Attorney "specialized" Advocates on this site that can point to specific cases of same and provide an answer  "based on regulation or prior case precedent?

  • 08-10-2011 1:27 PM In reply to

    Re: Rental Income (Spouse) - Married, Filing Joint Tax Retur...

    My credentials are public.

    Are you requesting that someone do free legal research for you? I don' t think you request is appropriate. If you want research specifically suited for your particular circumstances, you should seek out a lawyer who will do that for you and that can represent you.

  • 08-10-2011 1:51 PM In reply to

    Re: Rental Income (Spouse) - Married, Filing Joint Tax Retur...

    Sry Gordon. I began my first ever post by saying I'm new. 

    There's no problem disclosing anything to any organization. My records are clean.

    I know there are advocates and attorneys that know the answer. I regret even asking. 

    Again, no problem with disclosure; I though you'd have a more percise answer.

    Instead - it's entertainment. I'm a new poster and sorry I asked for specifics.

    Thanks,

    June

  • 08-10-2011 2:28 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on 03-30-2000
    • PA
    • Posts 48,249

    Re: Rental Income (Spouse) - Married, Filing Joint Tax Retur...

    I'm sure Gordon knows 100X more about it than I do.

    But you didn't post your state -and in a community property state the details might differ--you might well be entitled and thus attributed to a share of income earned by community asset ---I have no solid clue.



  • 08-11-2011 12:16 PM In reply to

    Re: Rental Income (Spouse) - Married, Filing Joint Tax Retur...

    No offense take and apology accepted. We all live and learn as we go.

Page 1 of 1 (10 items) | RSS

My Community

Community Membership New Users: Search Community