While my colleagues here compete for the most vague and evasive answer  ;)  the crux of the issue is this: if one of the partners uses the #3 test - 100 hours and nobody else exceeds it - the other one is out of luck for this same test.

The "sneaky duplex" phrase sounds to me just like "sneaky tax evasion" - it's great to get something illegally until you are caught.The screaming obvious action for you here is to call your town and ask about the property.

There are many, many ways to make money in real estate .. so why work with people who are evasive and egotistical. 

What he's asking is "will you facilitate and knowingly aid me in tax evasion"?

If you're doing so willfully, and that can be proven by an examiner, it actually gets upgraded to evasion which can have jail time of up to 5 years. 

That is the only way to explain why she is being evasive about providing a proper property management agreement.

My feeling is that the tax evasion thing cuts both ways. 

when they take money in and don't pay tax's on it.. which very few criminal types do that's tax evasion. money laundering etc.. so if these folks are out their dough and want some satisfaction.. filing complaints with the IRS  and sending in 1099 s to carson for money stolen may get his attention..  

IRS is the way to get at these folks.. most will not pay tax on ill gotten gains and that is tax evasion..

Then the complaint to the ag started.. at the end of the day looks like this guys is going to get it for tax evasion.. but the AG and the IRS don't talk.. so it will be 3 years now and word has it he will be indicted this summer.. so it just takes time as they build the case .. like the guy I am talking about they go warrants for all the bank accounts warrants  for his computers and his staff's computers..