Article Date:
August 2014


Word Count:
591

 

 

Is a 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 2012, fixed it up, and sold it in April 2013 at a net profit of $45,000.

 

I bought another house in May 2013, fixed it up, and sold it in June 2014 at a net profit of $55,000.

 

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