Question about IRS ruling? - Posted by Rick Shepard

Posted by Ernest Tew on August 27, 2003 at 17:26:58:

Rick, you may be getting yourself into a tax problem. When you are in the business of buying and selling mobile homes, you are a ‘dealer’ (for income tax purposes). Since dealers are not entitled to installment reporting, the entire gain is taxed in the year of sale. The fact that you didn’t receive the gain in cash doesn’t matter.

Before going further, I would strongly recommend that you get familiar with some of the strategies that allow us to minimize taxes. The tax problems and how to solve them is covered in my manual, “How To Get Rich Helping Others.”

If you need to discuss this, give me a call at (352) 475-1280. Mornings are best.

Question about IRS ruling? - Posted by Rick Shepard

Posted by Rick Shepard on August 26, 2003 at 20:58:12:

Has the matter of how to tax a Lonnie deal been settled? My partner and I have done few deals this year.

If we purchase a mobile home for $2000 and sell it for $8,000 with $1,000 down and financing the balance are we going to pay tax based on the sale price or the funds we actually collect in the tax year?

I know this has been thoroughly discussed on this forum but I just wanted to get as current an answer as possible. Year To date we have sold roughly $80,000 but of course we haven’t actually collected that much. Any advice would be greatly appreciated.


Rick (WV)

Re: Question about IRS ruling? - Posted by Dennie

Posted by Dennie on August 28, 2003 at 16:35:03:

I suggest you read JHyre post on January 08, 2001 called “Cash Method Revisited Just Before Tax Season.” This is another method for dealing with this.