Several court cases support the authority of the IRS to reclassify other forms of payments to a shareholder-employee as a wage expense and subject to employment taxes.[...]The key to establishing reasonable compensation is determining what the shareholder-employee did for the S corporation.

It is the epitome of a turn-key rental, which is very important for my wife and I at this stage in our lives as I run an Internet Marketing business and we have a 9 week old son.The home is located in an area that historically does not appreciate well.What are your thoughts on this as a first investment?

I'm in a very similar situation and that's why I wanted to get involved in your thread rather than make a new one.I'm 25 from the Boston-area working on an internet gig (which is location independent).

This year, he provided pay stubs showing $5200/month gross & another job of $1800/month gross again, as an independent contractor.How do I determine his income?

The lender is looking at my next purchase and using a rent schedule to determine if the property will have positive cash flow; not using my DTI to determine if I can "afford" the property.

There is a lot of information on the internet these days.

By the time we closed I had my carpenter, plumber, electrical, flooring folks all in place and ready to go.Then I drove the island to determine what I could purchase from there vs. what I needed to get from Houston.

You should determine how long it takes the builder to complete from the time you have you're mortgage commitment to move in.

How is the value determined?

FMV will now be best estimated by the comps your real estate agent will pull.take some time to search the forum and get familiar w/the options and ways to determine FMV.