However, you can significantly reduce your cost of living employing different strategies. 6 years ago, When I first started, I had a duplex where I rented the 2nd unit and lived on the 1st.

He should be able to file very quickly if he doesn't have to wait on an employer W2 to attach.

S could be more expensive due to wage reporting and employment taxes.

And while the IRS wants income taxes, they want employment taxes (SS, Medicare) much more.Thanks,Jason

They were both self employed running their own businesses and treated RE as a investment but not a business.

[Note: There is a caveat here: if the corporation employs 5 or more full-time positions, then the income would be classified as "active" and would be taxed accordingly].When rental property is held by an individual, the net passive income (or loss) is added to that individuals other income and taxed at the corresponding marginal tax rate.

Buying small rentals is self-employment.  

The employer that provides the training derives no immediate advantage from the activities of the trainees, and on occasion the employer’s operations may actually be impeded; 5.

Hey Brian Hoyt, this is kinda not what you're asking, but you mentioned rehabbing them...a former employer used to buy and sell RV's as a hobby/side business.

But, I'd be lying if I said that my poker winnings didn't somewhat contribute to things like our ability to become self-employed, our kids' college funds, etc.The important thing to remember -- and that a lot of kids who jumped into online poker the past few years -- is that playing poker for a living is nothing more than just another job.