Started to Work on the Rental Place

Jack and I have spent the morning talking with a plumber in Bergen county NJ at the rental place we have been working on it. We had to work out a deal with him, because we are trying to keep the costs down. Jack is going to do a bit of horse trading. He and I are going to help him with this project he has and he is going to do a bit of work for us. It is something that we have been doing on this project because it works out best this way. When you think about it you do work on the record and the government gets a piece of the action coming and going. I pay taxes on the money and then the guy I give it to pays more taxes. This way it is more of a straight exchange of services. We shall pay for the materials that we need and on the books it is going to look like Jack and I did the work ourselves.

The savings are in the taxes. Of course you have to think about what you could write off on your taxes and that part you do not want to worry about. You definitely can not do this all of the time and then end up looking as though you made no money on the books. If you do that then you end up raising a lot of a stink for no real reason. Nothing you can gain from that sort of stuff would make up for the cost of the lawyers and all of the wasted time you would end up having if you got tied up in a long court battle. They might think you were a criminal if you had a lot of off the record money.

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