Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo
I’m an independent computer consultant who nets $100,000 from my proprietorship.
I bought a house in March 2019, ﬁxed it up, and sold it in April 2020 at a net proﬁt of $85,000.
I bought another house in May 2020, ﬁxed it up, and sold it in June 2021 at a net proﬁt of $125,000.
These are my ﬁrst two properties. Does the IRS consider me a real estate dealer or a real estate investor?
This is a tough call.
If you keep doing this, you will be a dealer, without ...