Does this sound suspicious?

[Anonymous]

[quote=Anonymous]Op here. I wouldn't be so suspicious if he could just afford it because business took off. The thing is that they arent paying much for it. They said that the entire renovation will only cost them about $20K. [/quote]


so he is probably trading/bartering services. Geez OP what is your deal?!?

you are odd for sure.

[Anonymous]

Anonymous wrote:I'm sure the IRS would be interested in taking a closer look.

You'd think. My ex has been owning a "construction" business for years.

[Anonymous]

[quote=Anonymous][quote=Anonymous]Op here. I wouldn't be so suspicious if he could just afford it because business took off. The thing is that they arent paying much for it. They said that the entire renovation will only cost them about $20K. [/quote]


so he is probably trading/bartering services. Geez OP what is your deal?!?

you are odd for sure.[/quote]

OP here. What is YOUR deal? You wouldn't be suspicious if this was someone you know? This guy has always bragged about how "creative" he is with taxes, so that has always made me wonder about him. Now he keeps referring to these properties as "headquarters", so you can't get why I'm suspicious? Stop acting so Holier Than Thou. At least I'm venting on an anonymous forum instead of talking to people we both know.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We know this guy who is a co-owner of a development company. They are a middle class family and, as recently as 2 years ago, were really struggling to get by. He suddenly starts this company with his friend and was immediately able to acquire a second residence in the country and COMPLETELY renovate his own home. I mean, they actually gutted the entire house. They mentioned that the home remodel was hardly costing them anything but didnt really say why. Just something about him getting his construction crew to do it. Seems to be the same with the second home. He sort of jokingly refers to both as "headquarters" but he actually has a separate office location. I have never really trusted the guy, and the whole thing sounds really shady. What might be going on here? Any thoughts?

So OP what you are saying is that you just want to be a nosy dick - correct? You were a tattle tale in school an no one liked you, correct?

How is it any business of yours? you have no idea what is going on in this guy's life - inheritance....risky investment that ended up paying off... Jealous people like you disgust me.

YOU don't know how much I know about this guy. I do happen to know that he did not get an inheritance. And, as I said before, he is NOT PAYING for the renovation.

Listen, this family has had their fair share of struggles. If this was simply a matter of his business taking off, I would be incredibly happy for them. I get that if you are in the construction business, you have to ride the highs and survive the lows. I get that he probably wants to keep his money in real estate because that's what he knows. And I get that bartering and trading is one of the perks of the industry. But, like I said before, it's his constant jabbering about tax credits/loopholes/write-offs and the way he keeps calling the properties "headquarters".

[Anonymous]

Anonymous wrote:He is probably claiming his home as an office for tax purposes.

He thinks he can get away with it - historically many companies did.

The IRS is now using a lot of data to flag these things and he will have a large tax liability.

This is exactly what I think he's doing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We know this guy who is a co-owner of a development company. They are a middle class family and, as recently as 2 years ago, were really struggling to get by. He suddenly starts this company with his friend and was immediately able to acquire a second residence in the country and COMPLETELY renovate his own home. I mean, they actually gutted the entire house. They mentioned that the home remodel was hardly costing them anything but didnt really say why. Just something about him getting his construction crew to do it. Seems to be the same with the second home. He sort of jokingly refers to both as "headquarters" but he actually has a separate office location. I have never really trusted the guy, and the whole thing sounds really shady. What might be going on here? Any thoughts?

So OP what you are saying is that you just want to be a nosy dick - correct? You were a tattle tale in school an no one liked you, correct?

How is it any business of yours? you have no idea what is going on in this guy's life - inheritance....risky investment that ended up paying off... Jealous people like you disgust me.

YOU don't know how much I know about this guy. I do happen to know that he did not get an inheritance. And, as I said before, he is NOT PAYING for the renovation.

Listen, this family has had their fair share of struggles. If this was simply a matter of his business taking off, I would be incredibly happy for them. I get that if you are in the construction business, you have to ride the highs and survive the lows. I get that he probably wants to keep his money in real estate because that's what he knows. And I get that bartering and trading is one of the perks of the industry. But, like I said before, it's his constant jabbering about tax credits/loopholes/write-offs and the way he keeps calling the properties "headquarters".

OP you need serious help. you want to cause problems that may not exist - and all because you are jealous that someone can go from struggling to successful in a short period of time. No matter how he came to get his money, it is not your business!!! You're evil and need help.

[Anonymous]

How about you get a life OP.

[Anonymous]

Most folks in construction DO in fact use their primary residence as their office, and it's perfectly legit. In fact, lots of people can claim a write off for their home office (my BIL does outside sales and he can legitimately claim it).

OP sounds jealous. Super jealous. Super duper jealous.

[Anonymous]

Anonymous wrote:Most folks in construction DO in fact use their primary residence as their office, and it's perfectly legit. In fact, lots of people can claim a write off for their home office (my BIL does outside sales and he can legitimately claim it).

OP sounds jealous. Super jealous. Super duper jealous.

so everybody who can claim a home office gets to gut and renovate multiple houses at taxpayer's expense?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most folks in construction DO in fact use their primary residence as their office, and it's perfectly legit. In fact, lots of people can claim a write off for their home office (my BIL does outside sales and he can legitimately claim it).

OP sounds jealous. Super jealous. Super duper jealous.

so everybody who can claim a home office gets to gut and renovate multiple houses at taxpayer's expense?

The home office deduction is actually quite limited and you have to calculate the proportion of your house that is used for business purposes. I'm sure claiming over 50% would set up audit alerts. I took the new standard deduction for home offices last year and I think it was worth under $1000. There may be other things this guy is doing but I doubt he's funding a renovation through a home office deduction.

[Anonymous]

It's a testament to how much contractors rip off people. The real labor rate is very low .

[Anonymous]

I'd be suspicious, too. If the guy seems shady to you, then your gut is probably right. And the pp is correct that you have to state the % of the house that is being used for business. The IRS is very keen to those kind of deductions.

I wonder if he scored a big business loan and is blowing the wad on the house by buying his own company's services. That'll blow up soon enough. It'll take the IRS 3-5 years to audit him if he's making improper claims.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most folks in construction DO in fact use their primary residence as their office, and it's perfectly legit. In fact, lots of people can claim a write off for their home office (my BIL does outside sales and he can legitimately claim it).

OP sounds jealous. Super jealous. Super duper jealous.

so everybody who can claim a home office gets to gut and renovate multiple houses at taxpayer's expense?

Pretty much, if they want. I think chances are (less than 5%) the IRS will not catch it. If they do, pay the additional taxes, penalty, and interest. Some people roll the dice.

[Anonymous]

OP here. Those of you who think I am just being nosey or jealous - I'm willing to bet that you all align with a particular set of people who are anti- government and anti-taxes. If you see someone who is able to pull one over on big government, you are all for it. Am I right? I don't think you can deny that my suspicions are justified here. I know it's not a slam dunk case, which is why I'm talking about it on Dcum instead of the IRS. Tax fraud is a very real problem and we ALL pay for it. The IRS doesn't have a whistle blower program as an outlet for jealous people. They have it because it is a serious offense that warrants serious consequences. It really annoys me that so many of you seem to think anyone who doesnt simply look the other way is a jealous turd.

[Anonymous]

Anonymous wrote:I'd be suspicious, too. If the guy seems shady to you, then your gut is probably right. And the pp is correct that you have to state the % of the house that is being used for business. The IRS is very keen to those kind of deductions.

I wonder if he scored a big business loan and is blowing the wad on the house by buying his own company's services. That'll blow up soon enough. It'll take the IRS 3-5 years to audit him if he's making improper claims.

OP here. I bet you're right about the loan! This seems to fit.