Hi all,
I just recently started selling some hand-made jewelry on ebay and i'm making a decent amount of $. I have been living rent-free for over 1 year now but my roommate got his hours cut and now needs me to help with the bills. I (should) have enough money at the end of each month to pay him around 400-500 a month in rent. His mortgage is just over 1K a month so I'd be paying half or near that. Do I need to write him a check that is traceable or can I just give him cash each month? Also, would that be considered "insider/preferential" payment since I am paying him rent but not making any payments on my credit cards? Also, am I doing myself a disservice at all by selling on ebay? I ask because I do not know if when I file if I have to include my income + my roommates which would throw me over the median amount. Any help would be appreciated. Thanks so much.
I just recently started selling some hand-made jewelry on ebay and i'm making a decent amount of $. I have been living rent-free for over 1 year now but my roommate got his hours cut and now needs me to help with the bills. I (should) have enough money at the end of each month to pay him around 400-500 a month in rent. His mortgage is just over 1K a month so I'd be paying half or near that. Do I need to write him a check that is traceable or can I just give him cash each month? Also, would that be considered "insider/preferential" payment since I am paying him rent but not making any payments on my credit cards? Also, am I doing myself a disservice at all by selling on ebay? I ask because I do not know if when I file if I have to include my income + my roommates which would throw me over the median amount. Any help would be appreciated. Thanks so much.
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