@Critter-3 @Yes, semantics but I understand I do need to be clear. I do the books. Pay the bills, keep the loan in balance. I assume this would be “materially participating” as would our partner who does much of the construction. My husband does not really handle any specific tasks. So we do not take any draws. We just wait for the sale and hope it’s profitable! From what I’m learning here, that profit would be taxed as ordinary income and subject to SE taxes (although we both meet FICA maximums via our regular employment).
