All Forum Posts by: Bryce Davis

I was thinking instead of spending time to walk every dang interested party through the home and different times. Divide the projects into sections. An example hard wood floors. Anyone that is interested in bidding on the project would show up all at the same time and either give open or closed bids.

The advantage is less time wasted, time in valuable.

Has anyone ever done this?

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Originally posted by @J Scott:

Originally posted by @Bryce Davis:

It was not my intention to say I would require employees to do any of those things. I was just notating other tax advantages .

I assume since you have subs as a GC you give your subs a 1099, is that correct?

I think you misread my post -- I wasn't saying that you were requiring employees to do anything. I was saying that you likely won't be getting any net tax advantages by having employees.

You seemed to think that taking an itemized deduction for payroll was a tax advantage, but it's not, since you get the same deduction when paying someone as a 1099. But, with the employee, you also pay FICA on the employer's side.

So, what tax advantages do you think you're getting over a 1099 worker?

And yes, I pay all my subs as 1099.

We are on the same page, we just were miscommunication over the forum.

As far as hourly employees I was thinking each employee would technically have their own business therefore you could give them a 1099. Avoid all the FICA and other crap.

I admit you are right, having someone that has over 10 years of experience performing the task would save time and money in the long run. Least most of the time.

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Originally posted by @Steve B.:

Bryce how much experience do you have with rehab and hiring and managing contractors?

Over ten years of experience. I took two years off due to having a baby and life situations. Time for a come back! :o)

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Originally posted by @J Scott:

Originally posted by @Bryce Davis:

I am thinking of the huge tax advantages. I can write off their salaries.
I also own several other companies that I could use them in.

Along with the ability to get a GC license, pull own permits, and the ability to fall within the TAX PROFESSIONAL status. Huge tax advantage for rentals.

You should speak with a tax professional...I think you'll find that there are no tax advantages (the money is deductible either as a payroll expense or COGS, not both), and when you include FICA, you're actually spending MORE in taxes.

As for the GC license and pulling permits, why do you think you need employees to do that? I have my GC license so I can pull permits, but I still hire subcontractors (non-employees) for all work.

Lastly, how does having employees change your RE professional status (I assume that's what you meant)? The number of hours you spend managing your projects shouldn't change whether you have employees or use subs -- so your RE professional status won't be affected by the IRS categorization of your workers.

If those are your main reasons for doing this, my recommendation would be to rethink the strategy, as you're not actually getting the benefits you seem to think you are. But, that's just my opinion...

It was not my intention to say I would require employees to do any of those things.

I was just notating other tax advantages .

I assume since you have subs as a GC you give your subs a 1099, is that correct?

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J - Scott

Do you give your specialist a 1099?

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Lord, not saying everything he was doing was right but talk about loyalty. LOL

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I am thinking of the huge tax advantages. I can write off their salaries.

I also own several other companies that I could use them in.

Along with the ability to get a GC license, pull own permits, and the ability to fall within the TAX PROFESSIONAL status. Huge tax advantage for rentals.

My other thought would be as I develop my property management business, the same hourly people can maintain them and attend to maintenance request.

Thoughts?

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I am in the process of hiring my own team. I used to have GC's or subs quote per job but I would thought I could save some money by paying a crew a hourly rate.

Example:

2 Do Everything Employees

1 Electrician

1 Plumber

What has been your experience? Do you have any advice?

Bryce

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Use a 403k loan. That way you build equity. I wish I would have done that. But my wife wanted instant gratification.

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All Forum Posts by: Bryce Davis

Bryce Davis has started 25 posts and replied 110 times.

Post: Property closed. Delinquent water bill pops up

Post: Creative Sub Bids & Contractor

Post: Hourly Rate vs Per Job Rate

Post: Hourly Rate vs Per Job Rate

Post: Hourly Rate vs Per Job Rate

Post: Hourly Rate vs Per Job Rate

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Post: Hourly Rate vs Per Job Rate

Post: Hourly Rate vs Per Job Rate

Post: Advice for buying primary residence?