Posted by Jimmy on September 07, 2005 at 08:02:43:
the subject matter is federal income taxation, and perhaps state and local income taxation.
the issue is whether you are acting as an investor or a dealer. as an investor, your gains and losses would be treated as capital gains and losses. once you cross the line, and become a dealer in houses, your gains and losses are taxed as ordinary income, and are also subject to self-employment taxes.
This is your first deal. You are not a dealer. You are just dipping your toe in the water, and don’t know what you realy want to do. You may fnd that you want to hold the property and rent it out.