Posted by Tony-VA on July 08, 2002 at 11:53:18:
Rachel,
John Hyre wrote a “How To Article” here that may help explain.
Here is the link:http://www.creonline.com/art-175.html
When are considered a “dealer?” - Posted by Rachel
Posted by Rachel on July 08, 2002 at 08:23:50:
At what point are you considered a “dealer” by the IRS? I am planning to go into wholesaling to start out. However, I would like to set-up a C-Corp. Within the C-Corp, I would like it to be a general partner with my LLC’s (each property). When assigned “dealer” status, does this mean I pay taxes like a sole proprietor (w/additional 15% self-employment tax)? How can I avoid this? Would I have to do other activity within my business besides flipping? (i.e. flip and lease option). Any advice you have would help. Thanks!