Should a beginner incorporate to escape IRS 'dealer' status? - Posted by Dan B.

Posted by JHyre in Ohio on March 24, 1999 at 07:35:39:

Check Bronchick’s site at www.legalwiz.com. His articles should answer your questions. If not, come on back & ask away.

John Hyre

Should a beginner incorporate to escape IRS ‘dealer’ status? - Posted by Dan B.

Posted by Dan B. on March 24, 1999 at 07:17:57:

I’m about ready to enter the playing field, but would like this issue settled first. I recall seeing several posts about incorporating, but don’t remember the details. I hear that if you do more than several flips/rehabs per year, you are in danger of getting tagged with the ‘dealer’ status. Questions include: what is being a ‘dealer’ mean to me? How will the IRS deal with me whether a dealer or not? Is there a difference between flips & rehabs re: dealer status? Will incorporating help?
Thanks for any & all comments.