Understand Tax Benefits of Rental Property

The w9 form is needed to set up a security deposit at your local bank. This form is completed by the tenant and given to you. It must include their name, mailing address, and social security number. Once you have this form, bring it with you to the bank when you go to set up the account.

Tell the bank that you want to set up a security deposit account for a rental property. They will establish the account in both your name and the tenants name, but only you should have access to the funds.

The W9 form tells the bank to report any interest earned on the account to the IRS under the tenants name.