Posted by Nate(DC) on April 20, 2002 at 14:34:21:
If an individual buys with the intent of reselling, he is a dealer.
If a corporation buys with the intent of reselling, it is a dealer.
If an individual is the owner of a dealer corporation, the individual is not necessarily a dealer.
NT
“Dealers” - Posted by Enrique
Posted by Enrique on April 20, 2002 at 09:59:15:
So as not to be labeled a “Dealer” by the IRS we incoroporated. Now, we are having tremendous problems trying to get financing…no one wants to lend to a new corporation. They will lend to me personally.
Any suggestions on what can be done?
Enrique
Re: “Dealers” - Posted by David Krulac
Posted by David Krulac on April 20, 2002 at 11:39:45:
#1 incorporating does NOT save you from being labeled a dealer, it only segregates your dealer activiites to that corp.
#2 most lenders will lend to a corp, IF the principles also sign personally for the loan.
David Krulac
Re: “Dealers” - Posted by Enrique
Posted by Enrique on April 20, 2002 at 14:11:35:
First, thanks David for your prompt reply.I still don’t understand your item#1. If the corpaoration is the one who does the buying/selling how can it be labeled a"Dealer"? My understanding is that a “Dealer” is an individual…corect?
Again thanks for your concern.
Enrique
If a corp does dealer type actions… - Posted by David Krulac
Posted by David Krulac on April 20, 2002 at 15:17:09:
then the corp is a dealer!
let’s say that all you do is quick flips, and you don’t do rentals or long term holds. then you would be a dealer.
if you form a corp and the corp does the same actions then the corp is a dealer. other actions that you do OUTSIDE of the corp won’t necessirly be tainted by the corp flipping.
David Krulac
Re: “Dealers” - Posted by rfreudental
Posted by rfreudental on April 20, 2002 at 14:37:04:
Enrique: A corporation is an entity unto itself, it IS an individual.