If they work independently, set their schedule, and use their resources, they might qualify as a 1099 contractor, but misclassification risks IRS penalties.Wages for W-2 employees and payments to 1099 contractors are both deductible business expenses, but compliance is key.This post does not create a CPA-Client relationship.

To maintain control and avoid being locked into larger deals, consider directly owning replacement properties or exploring a partial 1031 exchange while carefully structuring syndication investments.This post does not create a CPA-Client relationship.

For added liability protection, consider setting up an LLC for the rental, though this may have limited impact if the mortgage is in your name.This post does not create a CPA-Client relationship.

I don't use Michael, but if I didn't have the CPA am using(long story), he would be the guy.

Last but not least....A few members in replies have already mentioned why it makes sense to hold…….I very much appreciate ALL FEEDBACK, however I think it will be helpful to provide some added context as to why I am absolutely certain (and my CPA’s are convinced as well) on my decision to liquidate the entire portfolio and onceAs I educate clients on daily, income tax brackets as well as long term capital gain tax brackets in our country are more favorable right now than they've been at any point in the past 80 years.

Consult a CPA or advisor experienced in self-directed accounts to ensure compliance and maximize benefits.This post does not create a CPA-Client relationship.

Therefore, it is advisable for the client to consult with their CPA to receive personalized guidance tailored to their unique financial situation.

*This post does not create a CPA-client relationship.

A Roth IRA Conversion lets you convert funds, pay taxes upfront, and withdraw contributions tax- and penalty-free after 5 years, offering a longer-term solution.This post does not create a CPA-Client relationship.

Zoho Books, I am not using this as my partner uses it integrates nicely with CRM for book keeping and I could provide access to our CPA for Taxes.