Posted by William Bronchick on March 07, 2002 at 20:55:27:
One flip does not make you a dealer. Will 7 or 8? I’m not sure either, but review the guidelines in my Asset Protection course, such as:
-The # of deals you do a year
-The income from those deals compared to other income you earn
-The length of time each property held
etc etc.
Use a separate corp for your dealer properties to be safe. If you do one or two, don’t sweat it.
Bronchick, please help!! - Posted by Frank
Posted by Frank on March 07, 2002 at 18:16:37:
Below is the same message I posted earlier with no response. I would thing there is a pretty short and sweet answer. Bill, do you prefer to be addressed directly or is my post just not worth answering. Don’t take that the wrong way, I’m not trying to be offensive. I know your busy and don’t have time for everybody, but I hope you can spare a second or two for a customer of legalwiz. Thanks.
RE: DEALER TAXES
Sorry guys, I can’t search the legal archives (it’s under construction) or I would. Bill, I studied your ABC’s course. It was good and I plan on going through more of them. I’m very busy and find the tapes very convenient.
I am planning on bidding on a property at an auction fairly soon, this coming Monday for a quick flip. I have been a buy and hold investor and haven’t sold anything yet. I have been warned of losing all of my passive investor tax benefits which are vary valuable to me, if the IRS labels me as a dealer. Like I said, I haven’t flipped one yet and would like to set up the correct vehicle which I’m not quite sure of yet. Bill, I suppose one of your courses will address that in detail. Main question for now though is will the IRS let me get away with one flip before the IRS tags me as a dealer. Is the loss of passive investor benifits true? I am in Ohio and only have 8 properties, 3 triples and 5 doubles if that matters. I don’t plan on selling any of those.