Posted by Tom-FL on January 12, 2004 at 19:29:44:
You use a C corp with it’s own taxpayer ID to take the dealer hit and pay all the taxes. Then you are just an employee.
It really only matters if you ever intend to take advantage of passive income rules for landlords. They may be unavailable if you had a “dealer” tag on your back.
Using a separate entity is still a good idea for other reasons as well.
Dealer Label? Have you got that on your name? - Posted by Brad
Posted by Brad on January 12, 2004 at 13:48:18:
I remember Legrand or Bronchick mention that you can still do flipping without stamped by INS as a dealer . But I read in some where else that if you at least done two flippings you are all set as a Dealer and pay 15% Social Security tax + 40% IRS tax.
How are you guys avoid this Dealer Status doing countless flipping.?