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Updated over 4 years ago,
Tax Advice Needed working with friend
Hi BP Members!
I’m finally starting my real estate business idea and am looking for a tax person to give advice / work with.
My girlfriend and I focus on buying fixer-upper properties in Ohio to rehab them to hold long term. To manage the rehab/contractors, we’re sending out a friend named Dan.
Since Dan works for the business and is willing to temporarily relocate, I want to write off the transportation costs (airfare & Uber rides), work phone expense, as well as a per Diem for meals (~$30/day).
For it to be a deductible expense, I assume he either needs to work for the business or be like a 1% owner.
If Dan doesn’t want to take a paycheck, can we still consider him an employee and write off his expenses? Or do we need to make him a 1% owner and have him not take a draw/salary until we grow our business.
Would love to hear your thoughts and if you have recommendations for people to reach out to. I’m new to this and ready to learn!