Payroll,taxes,benefits,and paying salary during slow periods is all wasted resources.I definitely agree with this sentiment, but keep in mind that if you're looking to hire a project manager / right-hand-man type person, it's unlikely the IRS would allow you to pay him like a contractor, as he would almost certainly be treated as an employee.But, as John and Rob said, employees are something you should hire only when necessary and not without serious consideration -- lots of overhead, management effort and costs are involved.As an example, I used to manage a 150 person organization for a Fortune 50 company, and the time and overhead spent on management wasn't that much more than what I spend now on a single employee in a small, family-owned business.

That gives you a glimpse of how they will treat your property, and enables you to run away from THEM before its too late!

I vote for just replacing it; after I notice how they would be treating my property.

I don't remember the name of the thread a month or so ago; but, we decided then that one way to qualify a prospedt like this is to inspect how he is treating the property he lives in now.

The income will be taxed at ordinary rates regardless of when it it sold as the property is treated as inventory.If you hold the property as a rental and then sell, some of your profits will be taxed as capital gains.

My treat for letting me pick your brain.

the egress window shouldn't be a big deal if it's a walk out basement...just have a guy do some demo work and then frame it up for a window..use treated lumber for anything that touches block/brick/ground..if it's block or brick on the perimeter, have a mason come in after him to make it look good...make sure to verify egress requirements..in my area they get complicated..windows have to have so much surface area of glass, so much square feet of openable area (can't open both sashes at the same time), so much distance from floor, etc.

I treat it as an independent contractor situation.

At first I saw my property situation as an unfortunate means to an end, but since finding BP and all of the great people and information within, I’m starting to treat this more like a business.

One is that this may be treated as a sham transaction if there is no economic reason for doing this other than tax avoidance.Sounds to me like you are really selling an asset which means a purchase/sale agreement.