Dealer Taxes - Posted by frank

Posted by frank on March 07, 2002 at 14:53:39:

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.