A kind of relevant question: If you rent out a house without paying a high tax, you can find it relatively easy to make money. My friend recently found an agent for his rental house. The agent told him he would not give him 1099 form. He seemed to imply my friend can report on his tax return whatever amount he wants. He bourght the house for $160,000 and the rent is $1300. With $2800 property tax he can still make some money...