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Updated over 3 years ago,
Tax Benefits to 1099ing a spouse
Question for my tax savvy REI's out there. My wife and I own a handful of long term rentals and I am the sole partner of an LLC for some of it. My wife assists with property management, scouting new deals, interviewing agents/lenders, etc. Is there any benefit to paying her via a 1099. Not only tax benefits but I heard if she logs over 1000 hours she would be considered a "real estate professional" and can take advantage of some extra tax breaks that I myself cannot as a pure "investor". She does not have a full time W2 as she's home with the three kids. Any insight on this top would be amazing. Thank you!