SEARCH
Help
RESOURCES
Article Date:
September 2021


Word Count:
579

 

 

Is a Property Fix-up and Sale an Investor or a Dealer Property?


Background

 

I’m an independent computer consultant who nets $100,000 from my proprietorship.

 

I bought a house in March 2019, fixed it up, and sold it in April 2020 at a net profit of $85,000.

 

I bought another house in May 2020, fixed it up, and sold it in June 2021 at a net profit of $125,000.

 

Question

 

These are my first two properties. Does the IRS consider me a real estate dealer or a real estate investor?

 

Answer

 

This is a tough call.

 

If you keep doing ... Log in to view full article.

Log in to view full article

Already a subscriber?

Email Address


Password


Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee