Maybe they will see you as low risk for audit and suggest option 1 or 2 to not attract attention.One approach to get the contractor to provide their social security number is tell them you are going to 1099 them and tell the IRS they refused to provide their tax payer ID number.

This is what our CPA says:"The rental real estate loss allowance is a federal tax deduction available to taxpayers who own and rent property in the U.S.

Although I recommend speaking with a CPA first before making any decision.You can keep her as dependent as long as the salary paid is not more than the income of the taxpayer.

The W-9 is a standard IRS form used to request the taxpayer identification number (TIN) and legal name of the entity, which is essential for tax reporting purposes.

To qualify as a real estate professional, a taxpayer must satisfy the following tests: Perform more than 50% of services in real property trades or businesses (“50% test”), and.

@Thomas Talbert your CPA should be telling you that you need to make yourself a W-2 employee of the company and pay yourself a monthly paycheck.The payroll tax deductions will help avoid a huge end of the year tax bill.Also, too large of a tax bill will piss off the IRS and they may charge you penalties + interest for not making quarterly estimated tax payments.

However, as the owner you still need to spend more than 50% of personal services and more than 750 hours on the real estate business on your own.Alternatively, short-term rentals are generally treated as active business income and therefore are eligible to offset w-2 income.Navigating the Real Estate Professional Rules"When measuring material participation, a married taxpayer is required to count any hours performed by his or her spouse, even if the spouse does not own an interest in the business or if no joint return is filed.32 While this rule is advantageous because it makes it more likely the taxpayer materially participates in the real property trade or business, it is a trap for the unwary in the real estate professional context, as discussed below in Step 3.""

This is out of an article that should help you get your research started: A taxpayer may not deduct losses sustained in the demolition of buildings and their structural components.

Section 121 exclusion you are referring to asks: Did the taxpayer live in the home for 24 months of the prior 5 years?

Hi Caleb Rehg,If you have employees you will have to pay quarterly PAYROLL taxes, but these can be taken care of by a payroll servicer such as Gusto or ADP.Otherwise, if you expect to have a substantial net income from the rental property at the end of the year, you may opt to make quarterly estimated tax payments so that you that you don't get surprised by a tax amount owed with your tax return.