Posted by Stacy (AZ) on April 10, 2002 at 11:09:37:
Frank, this question will prbably get a quicker and more worthy response if you post it on the legal forum. I did read a post from John Hyre, stating that the IRS will allow properties that are passive (hold) to exist with dealer (quick flip) properties in the same corporation. According to what I remember in his reply, he stated the dealer properties would not force the passive properties to be exempt from 1031, long term capital gains treatment, etc. This surprised me, since I’ve always read it’s best to keep dealer properties in a corp, and separately hold rentals in an LLC. But, as I said, I’d post this in the legal forum to get the straight skinny from the experts.