Does this sound suspicious?
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Anonymous
| 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? |
Anonymous
| Easy. His workers are on a salary so his company pays them $X per year regardless of which projects they are working on. So when there's no client project on deck, he puts them to work on his own house. It's a tax-free benefit, but not cost-free. |
Anonymous
| Probably workers doing it on downtime. May even be using excess stuff ordered by his clients to finish his own house, people routinely buy a sink and then decide they want a different one, change plans after Sheetrock was ordered, etc. The shady contractors over-order on purpose, so there may be some of that. |
Anonymous
| I'm sure the IRS would be interested in taking a closer look. |
Anonymous
| Get a hobby, OP. |
Anonymous
| The construction crew does not actually work for him. They are just contractors. AND every square inch of the home was designed by an architect and an interior designer. |
Anonymous
| He may be having the work down in-trade with the contractors. Also, finances in that sort of business literally change overnight. Big job finally pays off after owing for 18-months, payment made for materials comes in 6-months before purchase needs to be made. |
Anonymous
Could be a tit for tat. Architect does his house, he recommends architect. Ditto for interior designer. Tritto for contractors. And how would you know if the contractors work for him or not? |
Anonymous
| Not that it's any of your business, but he may have other sources of income that you are not aware of. For example, family money, trusts, etc. Although, some of the pp examples sound plausible as well. |
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. |
Anonymous
| Doing it for trade or barter. Very common, and totally legit. All the guys I know with construction companies have nice homes plus a house at the beach or a lake...built or renovated by their crews or contacts. No red flags. |
Anonymous
He may have had the money all along. Appearances can be deceiving. We could spend six-figures improving our home but we don't need to, so I save the money. DW is happy with it, so I'm happy too. On down the line, as I accumulate more, I'll do more with the home. |
Anonymous
| Probably pays the guys $10/hour. Materials are cheap. |
Anonymous
|
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. |
Anonymous
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. |