Tax credit for hiring a felon

Tax credit for hiring a felon

Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes

Have known a guy for many years and he has been a handyman for me off and on since owning rentals.

He did some really stupid things and is now a convicted felon and on parole. Know he is wanting work. Is there a tax benefit to hiring him because of a record?

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Investor · Davenport, IA · Member since 2010 · 111 posts · 22 votes
12y

I absolutely support this program. I'm researching to see if it was extended. I think it's absolutely ridiculous to watch someone like a hawk because they are labeled a felon.

If Martha Stewart decided to completely redesign your properties for free do you think tenants would be upset with that felon roaming around your property unattended? She is qualified to do the job and pose very little threat to any one. What would be the problem?

Not all felons are rapists and murderers. You screen employees just like tenants and sometimes you have to make a judgment call.

Some people just make a bad decision once in their life and then they are labeled and treated like they will forever be the scum of the earth.

Just do a search for a list of felonies:

Issuing a false certificate
175.40

Sports bribe receiving
180.45

Tampering with a sports contest in the first degree
180.51

Rent gouging in the first degree
180.57

Unlawful possession of a skimmer device in the first degree
190.86

Promoting gambling in the first degree
225.10

Possession of gambling records in the first degree
225.20

Gaming fraud in the first degree
225.60

Possession of unlawful gaming property in the second degree
225.75

Use of unlawful gaming property
225.85

Obscenity in the second degree
235.06

Eavesdropping
250.05

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  • Real Estate Investor · Memphis, TN · Member since 2013 · 100 posts · 34 votes
    12y

    I don't know about this first-hand, but here is a website that might help you sift through the details and processes:

    http://www.doleta.gov/business/incentives/opptax/

  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    12y

    The Work Opportunity Tax Credit is one such tax benefit, but I think it expired 12-31-13. Unless Congress extends it again.

    News article on the topic: Tax Breaks for Employers Who Hire Felons

  • California, MD · Member since 2012 · 6 posts · 2 votes
    12y

    Doesn't look like it was extended.

  • Residential Real Estate Broker · Washington, Washington D.C. · Member since 2013 · 150 posts · 77 votes
    12y

    Yes, there could be a potential tax benefit for hiring a convicted felon. There's a federal tax credit called the Work Opportunity Tax Credit. You can find more information about it here:

    http://www.doleta.gov/business/incentives/opptax/eligible.cfm

    Your local tax jurisdiction (city, county, state) may also have additional incentives available.

  • Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    12y

    Thanks @Robert Williams, @Daniel Nevins, @Kyle J., @Jenna Stonecipher.

    It sounds complicated in that you have to become certified. It is just too much of a distraction to deal with the gov.

  • Michele FischerPro Member
    Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    If I was a tenant and found out that my landlord hired a known felon, I wouldn't be very happy. If I was in your shoes, I would want to be present whenever the handyman is on or in any of my properties (especially if theft or violence related), which would be a real pain. We love to help the underdog, but sometimes it has too high of a price.

  • Investor · Davenport, IA · Member since 2010 · 111 posts · 22 votes
    12y

    I absolutely support this program. I'm researching to see if it was extended. I think it's absolutely ridiculous to watch someone like a hawk because they are labeled a felon.

    If Martha Stewart decided to completely redesign your properties for free do you think tenants would be upset with that felon roaming around your property unattended? She is qualified to do the job and pose very little threat to any one. What would be the problem?

    Not all felons are rapists and murderers. You screen employees just like tenants and sometimes you have to make a judgment call.

    Some people just make a bad decision once in their life and then they are labeled and treated like they will forever be the scum of the earth.

    Just do a search for a list of felonies:

    Issuing a false certificate
    175.40

    Sports bribe receiving
    180.45

    Tampering with a sports contest in the first degree
    180.51

    Rent gouging in the first degree
    180.57

    Unlawful possession of a skimmer device in the first degree
    190.86

    Promoting gambling in the first degree
    225.10

    Possession of gambling records in the first degree
    225.20

    Gaming fraud in the first degree
    225.60

    Possession of unlawful gaming property in the second degree
    225.75

    Use of unlawful gaming property
    225.85

    Obscenity in the second degree
    235.06

    Eavesdropping
    250.05

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    12y
    Originally posted by @Marie S.:
    ...

    Not all felons are rapists and murderers. ...

    Some people just make a bad decision once in their life and then they are labeled and treated like they will forever be the scum of the earth.

    Just do a search for a list of felonies:

    ...

    Rent gouging in the first degree
    180.57

    ...

    Hire the rent gouger to keep your tenants in line LOL :)

  • Investor · Davenport, IA · Member since 2010 · 111 posts · 22 votes
    12y

    @Steve Babiak

    I would hire 'em... just not to set my rent prices :-)

  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    12y

    @Jeff S. you need to find out exactly what the charges were he was convicted of, if it was a drunk driving accident with serious bodily injury and has gone through rehab it's one thing, if it was violence or theft you have to be careful of where you let him work. If someone claims something is missing after he works on their unit it opens up the door to a negligent hiring claim. Use your best judgement to protect you and him from claims. If it was a sex offense then having him go to properties solo again can be risky and possibly harm business. Had a local plumber hire a registered sex offender and he went in to a woman's house to work on pipes, nothing happened, but when she saw his face on a poster that was handed out later her husband and nearly everyone else quit using that plumber for fear of safety for their wives. The husband was pretty angry about the incident even though nothing happened. Folks deserve a second chance, but do it in a way that protects him and you.

  • Investor · Davenport, IA · Member since 2010 · 111 posts · 22 votes
    12y

    The latest:

    Guidance on WOTC Program Status

    The legislative authority for the WOTC program expired on December 31, 2013. At this time, we have no indication whether Congress may pass legislation extending authority for the program beyond December 31, 2013. However, in the past when the program's authority lapsed, Congress has retroactively reauthorized the program back to the date of expiration. In anticipation of possible retroactive reauthorization, employers should continue to submit WOTC applications for all target groups to State Workforce Agencies.

    On January 2, 2014, the Employment and Training Administration issued Training and Employment Guidance Letter No. 8-13. This guidance instructs State Workforce Agencies to:

    • Accept and fully process (i.e. issue certifications or denials) all WOTC applications received from employers for hires made on or before December 31, 2013.
    • Continue to accept WOTC applications from employers for hires made on or after January 1, 2014, but not to issue certifications for these applications until the program is reauthorized.

    ...

    http://www.doleta.gov/business/incentives/opptax/whatsnew.cfm#Status

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