Posted by John on March 12, 2006 at 13:52:41:
I read here on this board something to this 5 per year rule. I believe in Michigan you become a dealer with +5 transactions per year and profits are taxed as income with SS and medicare taxes. Memory is not what it used to be but I believe this is what they are refering to.
assignment of contracts - Posted by Jen Mac
Posted by Jen Mac on March 10, 2006 at 19:51:43:
Hi I am starting out as an investor in northern Michigan, and I am wanted to “flip” houses but I want to use the assignment of contract to do it. Alot of people are telling me that I can only flip up to 5 houses per year, does anyone know if the same holds true for assignment of contract. is it an unlimited amount of deals I can do or is there a cap amount??
Re: assignment of contracts - Posted by Joe
Posted by Joe on March 11, 2006 at 16:22:35:
I’d be curious where you heard this 5 per year rule. Sounds rather ridiculous to me. What will happen if you do more than 5 a year, will you be thrown in jail? The government doesn’t normally tell us how much work we can do, they just tax the hell out of anything they consider to be in excess of the norm. Ask whoever told you this where they heard it from. Then ask that source where they heard it from. Follow the trail until you end up at some legislation with some rules in it, or until you end up with the guy who started the rumor.
Re: assignment of contracts - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on March 10, 2006 at 20:30:39:
Assigning a contract is not selling real estate. You are selling your right/obligation to buy. You sell your position in the contract. This position that you own and are selling is personal property, not real property. Do all you can find.