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Business, 12.08.2020 23:01 carruthselena
In Year 1, Jim Warner was a single taxpayer with no children. Jim ran his own electronics repair business (a sole proprietorship). In Year 1, Jim spent 1,000 hours working on this business. In Year 1, Jim obtained a real estate agent license and began working as a real estate agent at Brokerage Firm. Although Jim was licensed as a real estate agent under applicable state law, he was not a licensed as a broker. Jim worked for Brokerage under a contract stating that he was an independent contractor, not an employee of the brokerage firm. The contract required Jim to sell, exchange, lease, or rent properties and solicit additional listings, clients, and customers diligently and with his best efforts. Jim spent a total of 1,100 hours selling real estate in Year 1. Consistent with Jim's independent contractor status, Brokerage issued a Form 1099 to him. Jim's earnings were solely generated by commissions. During Year 1, Jim owned two commercial real estate rental properties (Property 1 and Property 2). Jim spent approximately 80 hours managing Property 1. Property 1 had a resident who assisted Jim, and the resident spent 500 hours managing it. Jim spent approximately 430 hours managing Property 2. He was the only person who managed this property.
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In Year 1, Jim Warner was a single taxpayer with no children. Jim ran his own electronics repair bus...
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