He has accused them of convincing his tennant (he owns the duplex next door) to move out by telling them bad things about him.

He kept credible, contemporaneous logs while also having witnesses testify to his extraordinary work ethic.My question is if anyone had a personal experience in filing this status with a W2 job.

Yet, I was scared out of my wits about real estate and brought in a partner.  

@Nat Chan  and for the reasons you mention is why US and Aussie marketing companies targeted AU... for selling Ghetto properties for 10X what they were worth and not giving a single thought to the havoc they were creating to the poor naïve trusting AU investor.the amount of financial sociopathic behavior that I personally witnessed with US and AU SO called turn key companies and marketing companies was just absolutely the worst.Now not all were like that but there were enough of them to create some very sad situations.I was contacted by one Aussie who bought what was suppose to be a fully renovated 4 plex in Youngstown Ohio and it turned out it was gutted he paid 120k for it the seller paid 11k at tax sale never touched it..

@Nicole W. It's

But she has zero standing to sue you for reporting/not reporting your (maybe) income.I mean, can you imagine if the IRS actually opened "investigations" based on every accusation a disgruntled ex-spouse/lover, roommate, neighbor, former employee, etc., etc., etc. made? 

Chances are, if you can't do it in a place as meaningless as cyberspace on a forum, you don't make a good witness. 

So it appears to be a great leap to get all the way to accusing someone of immoral character for doing a Sub2. 

Or I have witnessed much higher negotiations between parties... some of these guys were just so brazen it was unreal.I was not mr popular If I wanted a property I bid what I would pay and disregarded the attempts to buy me off.Although there were many who showed up to the sales with NO intention of buying and just hoping for a payoff...I remember some guys in either NC or SC getting nailed by the feds about 07 or so.. 800k fine and not sure about jail.In my really early years in Oakland CA Alameda county..

But, if I hold to those same standards and expect a replacement tenant with similar qualifications, can the tenant accuse me of not making a reasonable attempt to re-rent?