Do YOU get paid?

2 Replies

So I tend to lean towards the do it myself side as far as maintenance break fix since I only have about 6 doors still. Trying to keep the profits as profits I guess. But I have been thinking, am I saving even less than I thought I was was? My thought was those times when I do hire someone, I get a  invoice, and something I write off on my texes. When I go spend 3 hours on a project, I get... a few miles and maybe a receipt from home depot. So my question, can I pay myself a reasonable rate to do work? The homes are in my name, so I am guessing no... But that makes me think I am really wasting time trying to save any money doing things I really do no want to be doing. 

Curious is this is the case, or if there is a way to recover the tax savings that I am not aware of. I guess this is one of those reasons why I should have a more active CPA..

So, thoughts??

You can pay yourself anything you want to do the work...

The problem is, while you'll get the write-off in the business, you'll also get the income from the payments you make to yourself.  And the income will likely incur self-employment taxes on top of income taxes, so you'll potentially end up in a worse financial position than you're currently in...

Ahh, I didn't even consider that. You are right, I'm hit either way. So I really do need to take the tax hit into account before I decide to not hire something out..... I'm not a fan of working for lower than I make at my day job, so something should change it looks like....

Join the Largest Real Estate Investing Community

Basic membership is free, forever.