Independent Contractors for Your Real Estate Business
By Pierre Mouchette | Real Property Experts LLC
As an investor in the real estate business, you can save money by hiring independent contractors rather than employees. You avoid paying withholding and filing costs each year that you would otherwise incur with an employee. You can obtain the IRS playbook entitled “Independent Contractor or Employee?”, which is available at www.irs.gov/pub/irs-utl/emporind.pdf.
The following are some items that you can do to protect yourself in case of an audit
Real Estate Investor Must Do’s
There are times when the hiring of temporary workers is necessary. To avoid taxes, these workers may request that you do not issue them a 1099! You need to know that giving a 1099 to your temporary workers protects you and helps to prove that the money spent was a legitimate business expense. Be sure to take that extra step to issue the 1099 when appropriate so that you are protected in a future audit.