Posted by Stacy (AZ) on February 14, 2000 at 16:14:04:
Richard, I’d be surprised, too. We’re talking about rehabs and flips which are typically not owner occupied.
Stacy
help - Posted by Ted Trunnels
Posted by Ted Trunnels on February 14, 2000 at 14:54:27:
I’m interested to know if anyone out there could be of assistance. I’m in the process of starting a new career as a real estate investor and have done a little homework on the subject but have a question. Is there any limit to the number of “quick flips” or “rehabs” that I can do in one year in the state of Nevada? Some of the people I have talked to have said that I can only do two to three a year. Does anybody know if this is true? If it is true, why the limit? Thanks in advance to anyone who can give me a little insight! Ted Trunnels Reno, NV.
Re: help - Posted by Stacy (AZ)
Posted by Stacy (AZ) on February 14, 2000 at 15:11:23:
I think your friends are referring to the IRS “Dealer” classification. It would be best to educate yourself about this. Read the articles by William Bronchick in the “how-to” section regarding corporations, and do a search of the archives for the word “dealer”. You’ll learn much more than anyone could post in a reply. Then come back with any specific questions.
Briefly: you may do as many flips as your heart desires, but after a limit (2 or 3?), the IRS will consider you a dealer, which is not illegal, but will certainly affect the way you run your business.
Stacy
Re: help - Posted by RichardTX
Posted by RichardTX on February 14, 2000 at 15:29:22:
I’d be very surprised if law stipulated how many consecutive personal residences (lived in) you could have, any more than frequently buying a car makes you a dealer.